§ 6.2-2501. (Effective October 1, 2010) Advertising; posting refundanticipation loan fee schedules; and disclosures.
A. Any facilitator who advertises the availability of a refund anticipationloan shall not directly or indirectly represent the loan as a customer'sactual refund. Any advertisement that mentions a refund anticipation loanshall state conspicuously that it is a loan and that a fee or interest willbe charged by the lending institution. The advertisement shall also disclosethe name of the lending institution.
B. Every facilitator who offers to facilitate, or who facilitates, a refundanticipation loan to a customer shall post a refund anticipation loan feeschedule showing the current fees for refund anticipation loans facilitatedat the office, for the electronic filing of a customer's tax return, forsetting up a refund account, and any other related activities necessary toreceive a refund anticipation loan. The refund anticipation loan fee schedulealso shall include a statement indicating that a customer may have the taxreturn filed electronically without also obtaining a refund anticipation loan.
C. The refund anticipation loan fee schedule required by subsection B shallbe made in not less than 28-point type on a document measuring not less than16 inches by 20 inches. The postings required in this section shall bedisplayed in a prominent location at each office where any facilitator isoffering to facilitate or is facilitating a refund anticipation loan.
D. Prior to an applicant completing a refund anticipation loan application, afacilitator that offers to facilitate a refund anticipation loan shallprovide to the applicant a disclosure clearly setting forth the following:
1. The refund anticipation loan fee schedule;
2. That a refund anticipation loan is a loan and is not the applicant'sactual income tax refund;
3. That a customer can file an income tax return electronically withoutapplying for a refund anticipation loan;
4. The average amount of time, according to the Internal Revenue Service,within which a customer who does not obtain a refund anticipation loan canexpect to receive a refund if a customer's return is filed or mailed asfollows:
a. Filed electronically and the refund is deposited directly into acustomer's bank account or mailed to a customer; and
b. Mailed to the Internal Revenue Service and the refund is depositeddirectly into a customer's bank account or mailed to a customer;
5. That the Internal Revenue Service does not guarantee that it will pay thefull amount of the anticipated refund and it does not guarantee a specificdate that a refund will be deposited into a customer's bank account or mailedto a customer;
6. That the borrower is responsible for the repayment of the refundanticipation loan and the related fees in the event that the tax refund isnot paid or not paid in full;
7. The estimated time within which the loan proceeds will be disbursed to theborrower if the loan is approved; and
8. The fee that will be charged, if any, if the applicant's loan is notapproved.
E. Prior to consummating a refund anticipation loan transaction, afacilitator shall provide to the applicant, in either written or electronicform, the following:
1. The estimated total fees for obtaining the refund anticipation loan;
2. The estimated annual percentage rate for the applicant's refundanticipation loan, using the guidelines established under the federal Truthin Lending Act (15 U.S.C. § 1601 et seq.); and
3. The various costs, fees, and finance charges, if applicable, associatedwith receiving a refund by mail or by direct deposit directly from theInternal Revenue Service, a refund anticipation loan, a refund anticipationcheck, or any other refund settlement options facilitated by the facilitator.
F. When an application involves more than one applicant, a disclosurepursuant to this section need only be given to one of the applicants applyingfor the refund anticipation loan.
(2006, c. 399, §§ 6.1-475, 6.1-476; 2010, c. 794.)
§ 6.2-2501. (Effective October 1, 2010) Advertising; posting refundanticipation loan fee schedules; and disclosures.
A. Any facilitator who advertises the availability of a refund anticipationloan shall not directly or indirectly represent the loan as a customer'sactual refund. Any advertisement that mentions a refund anticipation loanshall state conspicuously that it is a loan and that a fee or interest willbe charged by the lending institution. The advertisement shall also disclosethe name of the lending institution.
B. Every facilitator who offers to facilitate, or who facilitates, a refundanticipation loan to a customer shall post a refund anticipation loan feeschedule showing the current fees for refund anticipation loans facilitatedat the office, for the electronic filing of a customer's tax return, forsetting up a refund account, and any other related activities necessary toreceive a refund anticipation loan. The refund anticipation loan fee schedulealso shall include a statement indicating that a customer may have the taxreturn filed electronically without also obtaining a refund anticipation loan.
C. The refund anticipation loan fee schedule required by subsection B shallbe made in not less than 28-point type on a document measuring not less than16 inches by 20 inches. The postings required in this section shall bedisplayed in a prominent location at each office where any facilitator isoffering to facilitate or is facilitating a refund anticipation loan.
D. Prior to an applicant completing a refund anticipation loan application, afacilitator that offers to facilitate a refund anticipation loan shallprovide to the applicant a disclosure clearly setting forth the following:
1. The refund anticipation loan fee schedule;
2. That a refund anticipation loan is a loan and is not the applicant'sactual income tax refund;
3. That a customer can file an income tax return electronically withoutapplying for a refund anticipation loan;
4. The average amount of time, according to the Internal Revenue Service,within which a customer who does not obtain a refund anticipation loan canexpect to receive a refund if a customer's return is filed or mailed asfollows:
a. Filed electronically and the refund is deposited directly into acustomer's bank account or mailed to a customer; and
b. Mailed to the Internal Revenue Service and the refund is depositeddirectly into a customer's bank account or mailed to a customer;
5. That the Internal Revenue Service does not guarantee that it will pay thefull amount of the anticipated refund and it does not guarantee a specificdate that a refund will be deposited into a customer's bank account or mailedto a customer;
6. That the borrower is responsible for the repayment of the refundanticipation loan and the related fees in the event that the tax refund isnot paid or not paid in full;
7. The estimated time within which the loan proceeds will be disbursed to theborrower if the loan is approved; and
8. The fee that will be charged, if any, if the applicant's loan is notapproved.
E. Prior to consummating a refund anticipation loan transaction, afacilitator shall provide to the applicant, in either written or electronicform, the following:
1. The estimated total fees for obtaining the refund anticipation loan;
2. The estimated annual percentage rate for the applicant's refundanticipation loan, using the guidelines established under the federal Truthin Lending Act (15 U.S.C. § 1601 et seq.); and
3. The various costs, fees, and finance charges, if applicable, associatedwith receiving a refund by mail or by direct deposit directly from theInternal Revenue Service, a refund anticipation loan, a refund anticipationcheck, or any other refund settlement options facilitated by the facilitator.
F. When an application involves more than one applicant, a disclosurepursuant to this section need only be given to one of the applicants applyingfor the refund anticipation loan.
(2006, c. 399, §§ 6.1-475, 6.1-476; 2010, c. 794.)
§ 6.2-2501. (Effective October 1, 2010) Advertising; posting refundanticipation loan fee schedules; and disclosures.
A. Any facilitator who advertises the availability of a refund anticipationloan shall not directly or indirectly represent the loan as a customer'sactual refund. Any advertisement that mentions a refund anticipation loanshall state conspicuously that it is a loan and that a fee or interest willbe charged by the lending institution. The advertisement shall also disclosethe name of the lending institution.
B. Every facilitator who offers to facilitate, or who facilitates, a refundanticipation loan to a customer shall post a refund anticipation loan feeschedule showing the current fees for refund anticipation loans facilitatedat the office, for the electronic filing of a customer's tax return, forsetting up a refund account, and any other related activities necessary toreceive a refund anticipation loan. The refund anticipation loan fee schedulealso shall include a statement indicating that a customer may have the taxreturn filed electronically without also obtaining a refund anticipation loan.
C. The refund anticipation loan fee schedule required by subsection B shallbe made in not less than 28-point type on a document measuring not less than16 inches by 20 inches. The postings required in this section shall bedisplayed in a prominent location at each office where any facilitator isoffering to facilitate or is facilitating a refund anticipation loan.
D. Prior to an applicant completing a refund anticipation loan application, afacilitator that offers to facilitate a refund anticipation loan shallprovide to the applicant a disclosure clearly setting forth the following:
1. The refund anticipation loan fee schedule;
2. That a refund anticipation loan is a loan and is not the applicant'sactual income tax refund;
3. That a customer can file an income tax return electronically withoutapplying for a refund anticipation loan;
4. The average amount of time, according to the Internal Revenue Service,within which a customer who does not obtain a refund anticipation loan canexpect to receive a refund if a customer's return is filed or mailed asfollows:
a. Filed electronically and the refund is deposited directly into acustomer's bank account or mailed to a customer; and
b. Mailed to the Internal Revenue Service and the refund is depositeddirectly into a customer's bank account or mailed to a customer;
5. That the Internal Revenue Service does not guarantee that it will pay thefull amount of the anticipated refund and it does not guarantee a specificdate that a refund will be deposited into a customer's bank account or mailedto a customer;
6. That the borrower is responsible for the repayment of the refundanticipation loan and the related fees in the event that the tax refund isnot paid or not paid in full;
7. The estimated time within which the loan proceeds will be disbursed to theborrower if the loan is approved; and
8. The fee that will be charged, if any, if the applicant's loan is notapproved.
E. Prior to consummating a refund anticipation loan transaction, afacilitator shall provide to the applicant, in either written or electronicform, the following:
1. The estimated total fees for obtaining the refund anticipation loan;
2. The estimated annual percentage rate for the applicant's refundanticipation loan, using the guidelines established under the federal Truthin Lending Act (15 U.S.C. § 1601 et seq.); and
3. The various costs, fees, and finance charges, if applicable, associatedwith receiving a refund by mail or by direct deposit directly from theInternal Revenue Service, a refund anticipation loan, a refund anticipationcheck, or any other refund settlement options facilitated by the facilitator.
F. When an application involves more than one applicant, a disclosurepursuant to this section need only be given to one of the applicants applyingfor the refund anticipation loan.
(2006, c. 399, §§ 6.1-475, 6.1-476; 2010, c. 794.)
