Utah Code 7-24-202. Operational requirements for title loans

(1)

A title lender shall:

Terms Used In Utah Code 7-24-202

Annual percentage rate: The cost of credit at a yearly rate. It is calculated in a standard way, taking the average compound interest rate over the term of the loan so borrowers can compare loans. Lenders are required by law to disclose a card account's APR. ^{Source: FDIC}
Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
Contract: A legal written agreement that becomes binding when signed.
Department: means the Department of Financial Institutions. See Utah Code 7-1-103
Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. ^{Source: OCC}
Person: means :

(a)	an individual;

(b)	a corporation;

(c)	a limited liability company;

(d)	a partnership;

(e)

a trust;

(f)	an association;

(g)	a joint venture;

(h)

a pool;

(i)	a syndicate;

(j)	a sole proprietorship;

(k)	an unincorporated organization; or

(l)

any form of business entity. See Utah Code 7-1-103

Rollover: means the extension or renewal of the term of a title loan. See Utah Code 7-24-102

Service of process: The service of writs or summonses to the appropriate party.

Title lender: includes a person that:

(i)	arranges a title loan on behalf of a title lender;

(ii)	acts as an agent for a title lender; or

(iii)

assists a title lender in the extension of a title loan. See Utah Code 7-24-102

Title loan: includes a title loan extended at the same premise on which any of the following are sold:

(i)	a motor vehicle, as defined in Section 41-6a-102;

(ii)	a mobile home, as defined in Section 41-6a-102; or

(iii)

a motorboat, as defined in Section 73-18-2. See Utah Code 7-24-102

(a)

post in a conspicuous location on its premises that can be viewed by a person seeking a title loan:

(i)

a complete schedule of any interest or fees charged for a title loan that states the interest and fees:

(A)	as dollar amounts; and

(B)	as annual percentage rates; and

(ii)	a telephone number a person may call to make a complaint to the department regarding a title loan;

(b)

enter into a written contract for the title loan containing:

(i)	the name of the person receiving the title loan;

(ii)	the transaction date;

(iii)

the amount of the title loan;

(iv)

a statement of the total amount of any interest or fees that may be charged for the title loan, expressed as:

(A)	a dollar amount; and

(B)	an annual percentage rate; and

(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

(B)	a statement that service of process may be made to the designated agent;

(c)	provide the person seeking the title loan a copy of the written contract described in Subsection (1)(b);

(d)

prior to the execution of the title loan:

(i)

orally review with the person seeking the title loan the terms of the title loan including:

(A)

the amount of any interest rate or fee, expressed as:

(I)	a dollar amount; and

(II)	an annual percentage rate; and

(B)	the date on which the full amount of the title loan is due; and

(ii)	provide the person seeking the title loan a copy of the disclosure form adopted by the department under Section 7-24-203; and

(e)

comply with the following as in effect on the date the title loan is extended:

(i)	Truth in Lending Act, 15 U.S.C. § 1601 et seq., and its implementing federal regulations;

(ii)	Equal Credit Opportunity Act, 15 U.S.C. § 1691, and its implementing federal regulations;

(iii)

Bank Secrecy Act, 12 U.S.C. § 1829b, 12 U.S.C. § 1951 through 1959, and 31 U.S.C. § 5311 through 5332, and its implementing regulations; and

(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:

(a)

provide the information described in Subsection (1)(a) to the person receiving the title loan:

(i)	in a conspicuous manner; and

(ii)	prior to the person entering into the title loan; and

(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:

(a)	rollover a title loan unless the person receiving the title loan requests a rollover of the title loan;

(b)	extend more than one title loan on any vehicle at one time;

(c)	extend a title loan that exceeds the fair market value of the vehicle securing the title loan; or

(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:

(i)	current and expected income;

(ii)	current obligations; and

(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:

(a)	the person has provided the title lender with true and correct information concerning the person’s income, obligations, and employment; and

(b)	the person has the ability to repay the title loan.

Amended by Chapter 87, 2007 General Session

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