MS HB221

Extends the repeal date for provisions authorizing small loan licensees to offer auto club memberships to borrowers from July 1, 2010 to July 1, 2013.

Requires licensees to inform borrowers in writing that auto club membership purchase is optional and not a condition of loan approval, with written acknowledgment by borrower initials.

Allows borrowers to pay for auto club memberships with funds outside loan proceeds or have costs deducted from loan proceeds, with full refund available within 30 days if membership services are unused.

Directs the Commissioner of Banking and Consumer Finance to monitor and report auto club membership purchase data to the House Banking and Financial Services Committee and Senate Business and Financial Institutions Committee by January 1, 2009.

Takes effect July 1, 2010.