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| To enact sections 1315.41, 1315.42, and 1315.43 of | 1 |
| the Revised Code to require that certain | 2 |
| disclosures be made to consumers who apply for a | 3 |
| refund anticipation loan. | 4 |
| Section 1. That sections 1315.41, 1315.42, and 1315.43 of the | 5 |
| Revised Code be enacted to read as follows: | 6 |
| Sec. 1315.41. As used in sections 1315.41 and 1315.42 of the | 7 |
| Revised Code: | 8 |
| (A) "Consumer" means a natural person who, singly or jointly | 9 |
| with another consumer, is solicited for, applies for, or receives | 10 |
| the proceeds of a refund anticipation loan. | 11 |
| (B) "Refund anticipation loan" means a loan secured by or to | 12 |
| be repaid, directly or indirectly, from the proceeds of a | 13 |
| consumer's income tax refund or tax credits. | 14 |
| (C) "Refund anticipation loan fee" means the charges, fees, | 15 |
| or other consideration charged or imposed directly or indirectly | 16 |
| for a refund anticipation loan. The term includes any charge, fee, | 17 |
| or other consideration for a deposit account, if a deposit account | 18 |
| is used for receipt of the consumer's income tax refund or tax | 19 |
| credits to repay the amount owed on the refund anticipation loan. | 20 |
| It does not include any charge, fee, or other consideration | 21 |
| usually charged or imposed in the ordinary course of business for | 22 |
| tax return preparation and for electronic filing of tax returns, | 23 |
| if the same charges, fees, or other consideration in the same | 24 |
| amount are charged to customers who do not receive refund | 25 |
| anticipation loans. | 26 |
| (D) "Refund anticipation loan interest rate" means the | 27 |
| interest rate for a refund anticipation loan calculated by | 28 |
| dividing the total amount of refund anticipation loan fees by the | 29 |
| loan amount, which loan amount is minus any loan fees; then | 30 |
| dividing by the number of days in the loan term; then multiplying | 31 |
| by three hundred sixty-five and expressing the product as a | 32 |
| percentage. | 33 |
| Sec. 1315.42. Each person that, individually or in | 34 |
| conjunction or cooperation with another person, solicits, | 35 |
| processes, receives, or accepts an application or agreement for a | 36 |
| refund anticipation loan shall do all of the following: | 37 |
| (A)(1) Prominently display the fee schedule described in | 38 |
| divisions (A)(2) and (3) of this section in each place of business | 39 |
| where the person solicits, processes, receives, or accepts an | 40 |
| application or agreement for a refund anticipation loan. | 41 |
| (2) The fee schedule shall show the current fees for refund | 42 |
| anticipation loans and electronic filing of a consumer's tax | 43 |
| return, and shall include both of the following: | 44 |
| (a) Examples of refund anticipation loan interest rates for | 45 |
| refund anticipation loans of two hundred dollars, five hundred | 46 |
| dollars, one thousand dollars, one thousand five hundred dollars, | 47 |
| two thousand dollars, and five thousand dollars. | 48 |
| (b) In one-inch letters, the following notice: | 49 |
| 50 | |
| When you take out a refund anticipation loan, you are | 51 |
| borrowing money against your tax refund or tax credits. If the | 52 |
| amount of your tax refund or tax credits is less than expected, | 53 |
| you still must repay the entire amount of the loan. If the receipt | 54 |
| of your tax refund or tax credits is delayed, you may have to pay | 55 |
| additional costs. YOU CAN GET YOUR TAX REFUND OR TAX CREDITS IN | 56 |
| ABOUT TEN DAYS WITHOUT GETTING A LOAN. You can have your tax | 57 |
| return filed electronically and the amount deposited directly into | 58 |
| your own bank account without obtaining a loan or paying fees for | 59 |
| an extra product." | 60 |
| (3) The fee schedule shall be displayed in not less than | 61 |
| twenty-eight-point type on a document measuring not less than | 62 |
| sixteen inches by twenty inches. | 63 |
| (B)(1) At the time a consumer applies for a refund | 64 |
| anticipation loan, disclose all of the following to the consumer | 65 |
| on a form separate from the application and in fourteen-point | 66 |
| type: | 67 |
| (a) The fee for the refund anticipation loan; | 68 |
| (b) The fee for electronic filing of a tax return; | 69 |
| (c) The time within which the proceeds of the refund | 70 |
| anticipation loan will be paid to the consumer if the loan is | 71 |
| approved. | 72 |
| (2) The disclosure shall be in English and, if other than | 73 |
| English, the language in which the refund anticipation loan is | 74 |
| negotiated. | 75 |
| (C) Prior to the consummation of a refund anticipation loan, | 76 |
| provide to the consumer applicant a copy of the completed loan | 77 |
| application and agreement, which shall disclose both of the | 78 |
| following: | 79 |
| (1) In fourteen-point type, the refund anticipation loan | 80 |
| interest rate; | 81 |
| (2) In eighteen-point type, the following notice: | 82 |
| 83 | |
| This is a loan. This loan is borrowing money against your tax | 84 |
| refund or tax credits. If the amount of your tax refund or tax | 85 |
| credits is less than expected, you must still repay the entire | 86 |
| amount of the loan. If the receipt of your tax refund or tax | 87 |
| credits is delayed, you may have to pay additional costs. YOU CAN | 88 |
| GET YOUR TAX REFUND OR TAX CREDITS IN ABOUT 10 DAYS WITHOUT | 89 |
| GETTING THIS LOAN. You can have your tax return filed | 90 |
| electronically and the amount deposited directly into your own | 91 |
| bank account without obtaining a loan or other paid product." | 92 |
| (D) Ensure that the disclosures required under divisions (B) | 93 |
| and (C) of this section are initialed by the consumer applicant. | 94 |
| Sec. 1315.43. (A) No person shall fail to comply with | 95 |
| section 1315.42 of the Revised Code. | 96 |
| (B) Whoever violates division (A) of this section shall be | 97 |
| fined fifty dollars for a first offense and one hundred dollars | 98 |
| for any subsequent offense. | 99 |