MS SB2281

Removes the July 1, 2015 sunset date on the provision allowing small loan licensees to offer auto club memberships to borrowers on loans of $100 or more

Small loan licensees must inform borrowers in writing that auto club membership purchase is optional and not required to obtain the loan, with borrower initials required on the notification

Borrowers may pay for auto club memberships with separate funds or have the cost deducted from loan proceeds

Borrowers can cancel the auto club membership for a full refund within 30 days of purchase if no services have been used

The Commissioner of Banking and Consumer Finance retains authority to adopt rules preventing abuse and excessive charges under this section