HB 590 Summary

• Requires persons soliciting or processing refund anticipation loans to prominently display fee schedules in business locations, showing fees for loans and electronic filing with examples of interest rates for loan amounts of $200, $500, $1,000, $1,500, $2,000, and $5,000.

• Mandates disclosure to consumers at time of application on a separate form in 14-point type, including the refund anticipation loan fee, electronic filing fee, and timing of loan proceeds if approved.

• Requires lenders to provide consumers with a copy of the completed loan application and agreement prior to loan consummation, disclosing the refund anticipation loan interest rate in 14-point type and a consumer notice in 18-point type explaining the loan terms and alternatives.

• Defines "refund anticipation loan interest rate" as the total fees divided by the net loan amount, divided by the number of days in the loan term, then multiplied by 365 and expressed as a percentage.

• Prohibits failure to comply with disclosure requirements, with penalties of $50 for a first offense and $100 for any subsequent offense.