§ 5-3-106 — Disclosures for real estate secured consumer credit transactions

(1) With respect to a real estate secured consumer credit transaction payable in
installments, other than one pursuant to a revolving credit account, if the creditor
credits payments made after the due date as of the date of receipt rather than the
date payment was due, the creditor must clearly and conspicuously disclose to the
consumer at or before the time that credit is extended the effect of untimely
payments using language in substantially the following form:

The dollar amount of the finance charge disclosed to you for this credit transaction
is based upon your payments being received by the creditor on the date payments
are due. If your payments are received after the due date, even if received before
the date a late fee applies, you may owe additional and substantial money at the
end of the credit transaction and there may be little or no reduction of principal.
This is due to the accrual of daily interest until a payment is received.

(2) A creditor that makes or arranges for extensions of consumer loans
secured by a dwelling and that uses credit scores for that purpose shall, upon
request of the consumer, provide to the consumer to whom the credit report
relates, as soon as practicable and reasonable, but in a period not to exceed thirty
days, a copy of the information specifically required to be disclosed pursuant to
section 5-18-107 (1) in a form obtained from a consumer reporting agency as
defined in section 5-18-103 (4). The creditor may charge a reasonable fee for
making such information available to the consumer and such charge shall be an
additional charge within the meaning of section 5-2-202 and not part of the finance
charge.

(3) (a) Nothing in subsection (2) of this section shall require the creditor to:

(I) Explain to the consumer the information specifically required to be
disclosed pursuant to section 5-18-107 (1);

(II) Disclose any information other than the information required pursuant to
subsection (2) of this section;

(III) Disclose any credit score or related information obtained by the creditor
after the transaction occurs; or

(IV) Provide more than one disclosure to any one consumer per credit
transaction.

(b) The creditor's obligation pursuant to subsection (2) of this section and
this subsection (3) shall be limited to providing a copy of the information that was
received from a consumer reporting agency, as defined in section 5-18-103 (4). A
creditor who uses a credit score has no liability under this subsection (3) or
subsection (2) of this section for the content of the credit score information
received from a consumer reporting agency or from the omission of any information
within the report provided by the consumer reporting agency.

Legislative History

Source: L. 2000: Entire article R&RE, p. 1217, � 1, effective July 1. L. 2001: Entire section amended, p. 28, � 5, effective March 9. L. 2002: Entire section amended, p. 647, � 3, effective July 1, 2003. L. 2003: (1) amended, p. 1893, � 5, effective July 1. L. 2017: (2), (3)(a)(I), and (3)(b) amended, (HB 17-1238), ch. 260, p. 1170, � 7, effective August 9.