§ 24-4.5-7-301 — Disclosures; informational brochure

Indiana § 24-4.5-7-301

• Jurisdiction: Indiana
• Art. 4.5: UNIFORM CONSUMER CREDIT CODE
• Ch. 7: Small Loans

Text

(1) For purposes of this section, the
lender shall disclose to the borrower to whom credit is extended with
respect to a small loan the information required by the Consumer
Credit Protection Act (15 U.S.C. 1601 et seq.).
(2) In addition to the requirements of subsection (1), the lender must
conspicuously display in bold type a notice to the public both in the
lending area of each business location and in the loan documents the
following statement:
"WARNING: A small loan is not intended to meet long term
financial needs. A small loan should be used only to meet short
term cash needs. The cost of your small loan may be higher than
loans offered by other lending institutions. Small loans are
regulated by the State of Indiana Department of Financial
Institutions.
A borrower may rescind a small loan without cost by paying the
cash amount of the principal of the small loan to the lender not
later than the end of the business day immediately following the
day on which the borrower receives the loan proceeds.".
(3) The statement required in subsection (2) must be in:
(a) 14 point bold face type in the loan documents; and
(b) not less than one (1) inch bold print in the lending area of the
business location.
(4) When a borrower enters into a small loan, the lender shall
provide the borrower with a pamphlet approved by the department that
describes:
(a) the availability of debt management and credit counseling
services; and
(b) the borrower's rights and responsibilities in the transaction.

Legislative History

As added by P.L.38-2002, SEC.1. Amended by P.L.73-2004, SEC.25; P.L.35-2010, SEC.83; P.L.159-2017, SEC.18; P.L.69-2018, SEC.27.