HB 10-1400 Summary: Refund Anticipation Loans Act

• Requires refund anticipation loan facilitators to be registered as electronic return originators with the Internal Revenue Service or directly employed by one.

• Mandates facilitators post fee schedules showing current fees for refund anticipation loans and electronic tax filing, with annual percentage rate examples for loan amounts of $200, $500, $1,000, $1,500, $2,000, and $5,000.

• Requires oral disclosures informing consumers that the product is a short-term loan (1-2 weeks), the loan fee amount, interest rate, and that consumers remain liable for the full loan amount if their refund is less than expected.

• Requires written statements before loan closing disclosing that refunds typically arrive in 8-15 days without a loan, that consumers can file electronically without applying for a loan, IRS refund timeframes, and the estimated annual percentage rate calculated under federal Truth in Lending Act guidelines.

• Designates the administrator of the Uniform Consumer Credit Code to enforce the regulations, with authority to investigate complaints, issue cease-and-desist orders, and bring civil actions; violations are misdemeanors punishable by up to $500 fine or one year in county jail.

• Article repeals effective September 1, 2019, with prior review required by the legislature under the regulatory sunset review process.