§ 20-176.111. Maximum interest rate and charges.

(a)

A title loan lender may charge a maximum interest rate of two and one-half percent (2½%) per thirty (30) day period the title loan agreement remains outstanding and unsatisfied. In determining compliance with the maximum interest and finance charges, the computation must be simple interest and not add-on interest or any other interest computation.

(b)

The annual percentage rate that may be charged in a title loan transaction may equal, but not exceed, the annual percentage rate that must be computed and disclosed as required by the Federal Truth in Lending Act and Regulation Z of the Board of Governors of the Federal Reserve System. When the period for which the charge is computed is more or less than one month, the maximum rate for the period must be computed on the basis of one-thirtieth (1/30) the applicable monthly interest rate, multiplied by the number of days of the period.

(c)

Any transaction involving a borrower's delivery of a motor vehicle certificate of title in exchange for the advancement of funds on the condition that the borrower shall or may redeem or repurchase the certificate of title upon the payment of a sum of money, whether the transaction be characterized as a "buy-sell agreement," "sale-leaseback agreement," or otherwise, shall be deemed a violation of this division if such sum exceeds the amount that a title loan lender may collect in a title loan agreement under this division or if the terms of the transaction otherwise conflict with the permitted terms and conditions of a title loan agreement under this division.

(d)

No charges, including interest, in excess of the combined total of all charges permitted by this section shall be allowed.

(Ord. No. 1999-19, § 1, 4-27-99)