§ 20-176.110. Motor vehicle title loan transactions.

(a)

A title loan lender may engage in a title loan transaction, 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 holds a current, active license issued by the Division pursuant to this division of Art. VII;

(5)

The title loan lender delivers to the borrower, at the time the loan is made, a written title loan agreement that contains 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;

h.

The total title loan charge payable on the maturity date, designated as the "finance charge";

i.

The total amount, amount financed plus finance charge, 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.

The name and address of the Division as well as a Division telephone number to which borrowers may address complaints,

m.

A statement printed in not less than fourteen (14) point, bold type that:

1.

Your vehicle has been pledged as security for this loan and if you do not repay this loan in full, including the finance charge, YOU WILL LOSE YOUR VEHICLE.

2.

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 TWO AND ONE-HALF PERCENT (2½%) PER MONTH OR AN ANNUAL PERCENTAGE RATE LOWER THAN THIRTY PERCENT (30%).

n.

A statement that "The borrower represents and warrants that the motor vehicle and the certificate of title are not stolen, it has no liens or encumbrances against it, the borrower has the right to enter into this 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";

o.

Immediately above the signature of the borrower, a statement that "I, the borrower, declare that the information I have provided is true and correct and I have read and understand the foregoing document";

p.

A blank line for the signature of the borrower; and

(6)

The title loan lender displays, in a prominent place in the title loan premises, a sign no smaller than three (3) feet by five (5) feet with the following message in letters no less than one inch 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 TWO AND ONE-HALF PERCENT (2½%) PER MONTH OR AN ANNUAL PERCENTAGE RATE OF THIRTY PERCENT (30%).

(b)

No part of this division shall be construed to impair or affect the obligation of any title loan agreement or contract that was lawfully entered into prior to the effective date of Ordinance No. 1999-19.

(Ord. No. 1999-19, § 1, 4-27-99)