State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-249

§53‑249.  Filing and posting of loan fees; disclosures.

(a)        Filing of FeeSchedule.  On or before January 2 of each year, each registrant shall file withthe Commissioner a schedule of the refund anticipation loan fees for refundanticipation loans to be facilitated by the registrant during the succeedingyear.  Immediately upon learning of any change in the refund anticipation loanfee for that year, the registrant shall file an amendment with the Commissionersetting out the change.  Filing is effective upon receipt by the Commissioner.

(b)        Notice ofUnconscionable Fee.  If the Commissioner finds that a refund anticipation loanfee filed pursuant to subsection (a) is unconscionable, he shall notify theregistrant that (i) in his opinion the fee is unconscionable and (ii) theconsequences of charging a refund anticipation loan fee in an amount that theCommissioner has notified the registrant is unconscionable include liability tothe debtor for three times the amount of that fee and possible revocation of registrationas a facilitator after notice and a hearing.

(c)        Posting of FeeSchedule.  Every registrant shall prominently display at each office where theregistrant is facilitating refund anticipation loans a schedule showing thecurrent refund anticipation loan fees for refund anticipation loans facilitatedat the office and the current electronic filing fees for the electronic filingof the taxpayer's tax return.  Every registrant shall also prominently displayon each fee schedule a statement to the effect that the taxpayer may have thetax return filed electronically without also obtaining a refund anticipationloan.  No registrant may facilitate a refund anticipation loan unless (i) theschedule required by this subsection is displayed and (ii) the refundanticipation loan fee actually charged is the same as the fee displayed on theschedule and the fee filed with the Commissioner pursuant to subsection (a).

(d)        Disclosures.  Atthe time a debtor applies for a refund anticipation loan, the registrant shalldisclose to the debtor on a form separate from the application:

(1)        The fee for theloan.

(2)        The fee forelectronic filing of a tax return.

(3)        The time withinwhich the proceeds of the loan will be paid to the debtor if the loan isapproved.

(4)        That the debtor isresponsible for repayment of the loan and related fees in the event the taxrefund is not paid or is not paid in full.

(5)        The availability ofelectronic filing of the taxpayer's tax return, along with the average timeannounced by the appropriate taxing authority within which a taxpayer canexpect to receive a refund if the taxpayer's return is filed electronically andthe taxpayer does not obtain a refund anticipation loan.

(6)        Examples of theannual percentage rates, as defined by the Truth In Lending Act, 15 U.S.C. §1607 and 12 C.F.R. Section 226.22, for refund anticipation loans of fivehundred dollars ($500.00), seven hundred fifty dollars ($750.00), one thousanddollars ($1,000), one thousand five hundred dollars ($1,500), two thousanddollars ($2,000), and three thousand dollars ($3,000).  Regardless ofdisclosures of the annual percentage rate required by the Truth In Lending Act,if the debtor is required to establish or maintain a deposit account with thecreditor for receipt of the debtor's tax refund to offset the amount owed onthe loan, the maturity of the loan for the purpose of determining the annualpercentage rate disclosure under this section shall be assumed to be theestimated date when the tax refund will be deposited in the debtor's account. (1989(Reg. Sess., 1990), c. 881, s. 2.)