§ 26-52. Conditions for engaging in motor vehicle title loan transactions.
(a)
A title loan lender may engage in a title loan transaction only if the following conditions are met:
(1)
The title loan lender maintains physical possession of the motor vehicle certificate of title.
(2)
The borrower maintains possession of, or control over, the motor vehicle throughout the term of the loan.
(3)
The borrower is not required to pay rent or any other charge for the use of the motor vehicle.
(4)
The title loan lender delivers to the borrower, at the time the loan is made, a written title loan agreement that contains, at a minimum, the following information:
a.
The make, model and year of the motor vehicle to which the loan relates;
b.
The vehicle identification number, or other comparable identification number, along with the license plate number, if applicable, of the motor vehicle to which the loan relates;
c.
The name, address, date of birth, physical description and social security number of the borrower;
d.
The date of the transaction;
e.
The identification number and the type of identification, including the issuing agency, accepted from the borrower;
f.
The amount of money advanced, designated as the "amount financed";
g.
The maturity date of the title loan agreement which shall be 30 days after the date the title loan agreement is executed by the title loan lender and the borrower;
h.
The total title loan charge payable on the maturity date, designated as the "finance charge";
i.
The total amount which must be paid to redeem the loan property on the maturity date, designated as the "total amount of all payments";
j.
The annual percentage rate, computed in accordance with the regulations adopted by the Federal Reserve Board pursuant to the Federal Truth-in-Lending Act;
k.
The name and address of the title loan office;
l.
A statement printed in not less than 14 point, bold type that says:
1.
Your vehicle has been pledged as security for this loan and if you do not repay this loan in full by (insert due date) including the interest accrued (finance charge), then YOUR VEHICLE WILL BE REPOSSESSED.
2.
You are encouraged to repay this loan at the end of the thirty (30) day period. The lender is not required to extend or renew your loan and may then repossess your vehicle if you do not repay the loan and the accrued interest. It is important that you plan your finances so that you can repay this loan as soon as possible.
3.
THIS LOAN HAS A VERY HIGH INTEREST. RATE. DO NOT COMPLETE THIS LOAN TRANSACTION IF YOU HAVE THE ABILITY TO BORROW FROM ANOTHER SOURCE AT A RATE LOWER THAN ONE AND ONE HALF PERCENT (1½%) PER MONTH OR AN ANNUAL PERCENTAGE RATE OF LOWER THAN EIGHTEEN PERCENT (18%).
m.
A statement that "The borrower represents and warrants that the motor vehicle and the certificate of title is not stolen, it has no liens or encumbrances against it, the borrower has the right to enter into the transaction, and the borrower will not attempt to sell the motor vehicle or apply for a duplicate certificate of title while the title loan agreement is in effect;"
n.
Immediately above the signature of the borrower, a statement that says, "I, the borrower, declare that the information I have provided is true and correct and I have read and understand the foregoing document."
o.
A blank line for the signature of the borrower.
(5)
The title loan lender displays in a prominent place in the title loan premises, a sign no smaller than three feet by five feet with the following message written in letters no less than three inches high:
IF YOU RECEIVE A TITLE LOAN, YOUR VEHICLE WILL BE PLEDGED AS SECURITY FOR THE LOAN. IF YOU DO NOT REPAY THIS LOAN IN FULL, INCLUDING ALL FINANCE CHARGES, YOU WILL LOSE YOUR VEHICLE.
THIS LOAN HAS A VERY HIGH INTEREST RATE. DO NOT COMPLETE A TITLE LOAN TRANSACTION IF YOU HAVE THE ABILITY TO BORROW MONEY FROM ANOTHER SOURCE AT AN INTEREST RATE LOWER THAN.05 PERCENT PER DAY, 1.5 PERCENT PER MONTH, OR AN ANNUAL PERCENTAGE RATE OF 18 PERCENT.
(Ord. No. 2000-12, § 2, 2-22-00)