To enact sections 1315.41, 1315.42, and 1315.43 of the Revised Code to require that certain disclosures be made to consumers who apply for a refund anticipation loan.

Section 1. That sections 1315.41, 1315.42, and 1315.43 of the Revised Code be enacted to read as follows:

Sec. 1315.41.  As used in sections 1315.41 and 1315.42 of the Revised Code:

(A) "Consumer" means a natural person who, singly or jointly with another consumer, is solicited for, applies for, or receives the proceeds of a refund anticipation loan.

(B) "Refund anticipation loan" means a loan secured by or to be repaid, directly or indirectly, from the proceeds of a consumer's income tax refund or tax credits.

(C) "Refund anticipation loan fee" means the charges, fees, or other consideration charged or imposed directly or indirectly for a refund anticipation loan. The term includes any charge, fee, or other consideration for a deposit account, if a deposit account is used for receipt of the consumer's income tax refund or tax credits to repay the amount owed on the refund anticipation loan. It does not include any charge, fee, or other consideration usually charged or imposed in the ordinary course of business for tax return preparation and for electronic filing of tax returns, if the same charges, fees, or other consideration in the same amount are charged to customers who do not receive refund anticipation loans.

(D) "Refund anticipation loan interest rate" means the interest rate for a refund anticipation loan calculated by dividing the total amount of refund anticipation loan fees by the loan amount, which loan amount is minus any loan fees; then dividing by the number of days in the loan term; then multiplying by three hundred sixty-five and expressing the product as a percentage.

Sec. 1315.42.  Each person that, individually or in conjunction or cooperation with another person, solicits, processes, receives, or accepts an application or agreement for a refund anticipation loan shall do all of the following:

(A)(1) Prominently display the fee schedule described in divisions (A)(2) and (3) of this section in each place of business where the person solicits, processes, receives, or accepts an application or agreement for a refund anticipation loan.

(2) The fee schedule shall show the current fees for refund anticipation loans and electronic filing of a consumer's tax return, and shall include both of the following:

(a) Examples of refund anticipation loan interest rates for refund anticipation loans of two hundred dollars, five hundred dollars, one thousand dollars, one thousand five hundred dollars, two thousand dollars, and five thousand dollars.

(b) In one-inch letters, the following notice:

When you take out a refund anticipation loan, you are borrowing money against your tax refund or tax credits. If the amount of your tax refund or tax credits is less than expected, you still must repay the entire amount of the loan. If the receipt of your tax refund or tax credits is delayed, you may have to pay additional costs. YOU CAN GET YOUR TAX REFUND OR TAX CREDITS IN ABOUT TEN DAYS WITHOUT GETTING A LOAN. You can have your tax return filed electronically and the amount deposited directly into your own bank account without obtaining a loan or paying fees for an extra product."

(3) The fee schedule shall be displayed in not less than twenty-eight-point type on a document measuring not less than sixteen inches by twenty inches.

(B)(1) At the time a consumer applies for a refund anticipation loan, disclose all of the following to the consumer on a form separate from the application and in fourteen-point type:

(a) The fee for the refund anticipation loan;

(b) The fee for electronic filing of a tax return;

(c) The time within which the proceeds of the refund anticipation loan will be paid to the consumer if the loan is approved.

(2) The disclosure shall be in English and, if other than English, the language in which the refund anticipation loan is negotiated.

(C) Prior to the consummation of a refund anticipation loan, provide to the consumer applicant a copy of the completed loan application and agreement, which shall disclose both of the following:

(1) In fourteen-point type, the refund anticipation loan interest rate;

(2) In eighteen-point type, the following notice:

This is a loan. This loan is borrowing money against your tax refund or tax credits. If the amount of your tax refund or tax credits is less than expected, you must still repay the entire amount of the loan. If the receipt of your tax refund or tax credits is delayed, you may have to pay additional costs. YOU CAN GET YOUR TAX REFUND OR TAX CREDITS IN ABOUT 10 DAYS WITHOUT GETTING THIS LOAN. You can have your tax return filed electronically and the amount deposited directly into your own bank account without obtaining a loan or other paid product."

(D) Ensure that the disclosures required under divisions (B) and (C) of this section are initialed by the consumer applicant.

Sec. 1315.43.  (A) No person shall fail to comply with section 1315.42 of the Revised Code.

(B) Whoever violates division (A) of this section shall be fined fifty dollars for a first offense and one hundred dollars for any subsequent offense.