SB 189 Summary

• Establishes the "Refund Anticipation Loan Act" requiring facilitators to disclose in writing before application completion: loan fees, annual percentage rates, that the loan is credit (not actual refund), availability of e-filing without a loan, expected refund timing, tax authority cannot guarantee full refund payment or specific date, borrower responsibility for repayment if refund not received, estimated loan disbursement time, and fees if loan is denied.

• Requires facilitators to disclose estimated total fees and annual percentage rate before entering into a refund anticipation loan agreement.

• Prohibits facilitators from: requiring loans to complete tax returns, misrepresenting loan terms, failing to process applications, or engaging in fraudulent practices related to refund anticipation loans.

• Allows borrowers to rescind loans by close of business the day following loan issuance by returning the check or repaying via money order or certified check, with facilitators required to return loan-related fees but not account establishment fees.

• Establishes criminal penalties of up to $500 fine and/or 93 days imprisonment for violations; preempts all local ordinances and regulations on refund anticipation loans.