Hawaii Revised Statutes 480J-7 – Notice to consumers; general requirements; right to prepay; loan limits; right to rescind
Terms Used In Hawaii Revised Statutes 480J-7
- Installment loan: means a loan made pursuant to this chapter. See Hawaii Revised Statutes 480J-1
- lender: means any person who is in the business of offering or making a consumer loan, who arranges a consumer loan for a third party, or who acts as an agent for a third party, regardless of whether the third party is exempt from licensure under this chapter or whether approval, acceptance, or ratification by the third party is necessary to create a legal obligation for the third party, through any method including mail, telephone, the Internet, or any electronic means. See Hawaii Revised Statutes 480J-1
An installment lender shall provide the following notice on each written agreement for an installment loan. The notice shall be in a prominent place and in at least twelve-point type:
“THIS INSTALLMENT LOAN IS NOT INTENDED TO MEET LONG-TERM FINANCIAL NEEDS.
THIS INSTALLMENT LOAN SHOULD BE USED ONLY TO MEET SHORT-TERM CASH NEEDS.
YOU HAVE THE RIGHT TO PREPAY THIS INSTALLMENT LOAN IN FULL OR IN PART WITHOUT A PENALTY.
RENEWING THIS INSTALLMENT LOAN RATHER THAN PAYING THE DEBT IN FULL MAY REQUIRE ADDITIONAL FEES OR CHARGES.
STATE LAW PROHIBITS THE PRINCIPAL OF THIS INSTALLMENT LOAN FROM EXCEEDING ONE THOUSAND FIVE HUNDRED DOLLARS ($1,500). EXCEEDING THIS AMOUNT MAY CREATE FINANCIAL HARDSHIPS FOR YOU AND YOUR FAMILY.
YOU HAVE THE RIGHT TO RESCIND THIS TRANSACTION AT OR BEFORE 5:00 P.M. [SPECIFY HERE THE CLOSE OF THE THIRD BUSINESS DAY BY DAY OF WEEK AND DATE].”