§ 7-24-202 — Operational requirements for title loans.

(1) A title lender shall:

(1)(a) post in a conspicuous location on its premises that can be viewed by a person seeking a title loan:
(1)(a)(i) a complete schedule of any interest or fees charged for a title loan that states the interest and fees:

(1)(a)(i)(A) as dollar amounts; and
(1)(a)(i)(B) as annual percentage rates; and
(1)(a)(ii) a telephone number a person may call to make a complaint to the department regarding a title loan;
(1)(b) enter into a written contract for the title loan containing:
(1)(b)(i) the name of the person receiving the title loan;
(1)(b)(ii) the transaction date;
(1)(b)(iii) the amount of the title loan;
(1)(b)(iv) a statement of the total amount of any interest or fees that may be charged for the title loan, expressed as:

(1)(b)(iv)(A) a dollar amount; and
(1)(b)(iv)(B) an annual percentage rate; and
(1)(b)(v) (1)(b)(v)(A) the name and address of the designated agent required to be provided the department under Subsection 7-24-201(2)(d)(vi); and
(1)(b)(v)(B) a statement that service of process may be made to the designated agent;
(1)(c) provide the person seeking the title loan a copy of the written contract described in Subsection (1)(b);
(1)(d) prior to the execution of the title loan:
(1)(d)(i) orally review with the person seeking the title loan the terms of the title loan including:

(1)(d)(i)(A) the amount of any interest rate or fee, expressed as:
(1)(d)(i)(A)(I) a dollar amount; and
(1)(d)(i)(A)(II) an annual percentage rate; and
(1)(d)(i)(B) the date on which the full amount of the title loan is due; and
(1)(d)(ii) provide the person seeking the title loan a copy of the disclosure form adopted by the department under Section 7-24-203; and
(1)(e) comply with the following as in effect on the date the title loan is extended:
(1)(e)(i) Truth in Lending Act, 15 U.S.C. Sec. 1601 et seq., and its implementing federal regulations;
(1)(e)(ii) Equal Credit Opportunity Act, 15 U.S.C. Sec. 1691, and its implementing federal regulations;
(1)(e)(iii) Bank Secrecy Act, 12 U.S.C. Sec. 1829b, 12 U.S.C. Sec. 1951 through 1959, and 31 U.S.C. Sec. 5311 through 5332, and its implementing regulations; and
(1)(e)(iv) Title 70C, Utah Consumer Credit Code.
(2) If a title lender extends a title loan through the Internet or other electronic means, the title lender shall:

(2)(a) provide the information described in Subsection (1)(a) to the person receiving the title loan:
(2)(a)(i) in a conspicuous manner; and
(2)(a)(ii) prior to the person entering into the title loan; and
(2)(b) in connection with the disclosure required under Subsection (2)(a), provide a list of states where the title lender is registered or authorized to offer title loans through the Internet or other electronic means.
(3) A title lender may not:

(3)(a) rollover a title loan unless the person receiving the title loan requests a rollover of the title loan;
(3)(b) extend more than one title loan on any vehicle at one time;
(3)(c) extend a title loan that exceeds the fair market value of the vehicle securing the title loan; or
(3)(d) extend a title loan without regard to the ability of the person seeking the title loan to repay the title loan, including the person's:
(3)(d)(i) current and expected income;
(3)(d)(ii) current obligations; and
(3)(d)(iii) employment.
(4) A title lender has met the requirements of Subsection (3)(d) if the person seeking a title loan provides the title lender with a signed acknowledgment that:

(4)(a) the person has provided the title lender with true and correct information concerning the person's income, obligations, and employment; and
(4)(b) the person has the ability to repay the title loan.

Legislative History

Amended by Chapter 87, 2007 General Session