Utah Admin. Code R343-1-3 - Form of Disclosure

(1) Content of disclosure form. The disclosure form required by this rule must include:

(a) a statement about the cost of obtaining the loan in the format prescribed in Section 226.18 and Appendix H of Truth in Lending 12 CFR 226 ;

(b) a statement that failure to make any payment by the end of the contractual grace period may result in repossession of the property pledged to secure the loan;

(c) a statement that title loans are typically high cost loans and that lower cost loans are usually available to consumers with reasonable credit. Consumers should compare the "Annual Percentage Rate" of the loan with other loans that are available from other lenders that typically offer loans;

(d) a statement that if the consumer is obtaining the loan because of problems with their credit they may wish to obtain credit counseling or financial advice from entities listed under "Credit and Debt Counseling" in the yellow pages or the department or a governmental agency which regulates Utah lenders.

(e) the statements described above shall be disclosed on the front side of the disclosure form preceding the borrowers' signature line.

(2) Type size of the disclosure form. The disclosure form required by this rule must be of the following font sizes:

(a) the terms for "Annual Percentage Rate" and "Finance Charge" shall be 12 point;

(b) no other disclosure shall be as conspicuous except the creditor's identity;

(c) all other disclosures shall be at least 9 point.

(3) Disclosure requirements; timing and method of disclosures.

(a) The title lender shall provide the disclosure form to the consumer in writing before the consumer completes the loan agreement.

(b) Disclosures must be readily understandable. The disclosures required by this rule must be conspicuous, simple, direct and designed to call attention to the nature and significance of the information provided. Examples of methods that could call attention to the nature and significance of the information provided include:

(i) A plain-language heading to call attention to the disclosures;

(ii) Boldface or italics for key words; and

(iii) Distinctive type style, and graphic devices, such as shading or sidebars, when the disclosures are combined with other information.

Notes

Utah Admin. Code R343-1-3