Tex.
Fin. Code Section 352.004
Disclosure Requirements
(a)
A facilitator to which Section 352.002 (Restriction on Acting as Facilitator) applies shall discuss with and clearly disclose to a borrower, after the borrower’s tax return has been prepared and before the loan is closed:(1)
the refund anticipation loan fee schedule;(2)
a written statement disclosing:(A)
that a refund anticipation loan is a loan and is not the borrower’s actual income tax refund;(B)
that the taxpayer may file an income tax return electronically without applying for a refund anticipation loan;(C)
that the borrower is responsible for repayment of the loan and related fees if the tax refund is not paid or is insufficient to repay the loan;(D)
any fee that will be charged if the loan is not approved;(E)
the average time, as published by the Internal Revenue Service, within which a taxpayer can expect to receive a refund for an income tax return filed:(i)
electronically, and the refund is:(a)
deposited directly into the taxpayer’s bank account; or(b)
mailed to the taxpayer; and(ii)
by mail, and the refund is:(a)
deposited directly into the taxpayer’s financial institution account; or(b)
mailed to the taxpayer;(F)
that the Internal Revenue Service does not guarantee:(i)
payment of the full amount of the anticipated refund; or(ii)
a specific date on which it will mail a refund or deposit the refund into a taxpayer’s financial institution account; and(G)
the estimated time within which the proceeds of the refund anticipation loan will be paid to the borrower if the loan is approved; and(3)
the following information, specific to the borrower:(A)
the estimated total fees for the loan; and(B)
the estimated annual percentage rate for the loan, calculated using the guidelines established under the Truth in Lending Act (15 U.S.C. Section 1601 et seq.).(b)
A refund anticipation loan fee schedule required by Subsection (a)(1) must be a listing or table of refund anticipation loan fees charged by the lender for refund anticipation loan amounts. The schedule shall:(1)
list separately each fee imposed related to the making of a refund anticipation loan;(2)
list the total amount of fees imposed related to the making of a refund anticipation loan; and(3)
include, for each stated loan amount, the estimated annual percentage rate for the loan, calculated using the guidelines established under the Truth in Lending Act (15 U.S.C. Section 1601 et seq.).(c)
A facilitator who advertises or markets refund anticipation loans in Spanish shall offer any borrower the option of receiving a Spanish-language printed disclosure and loan contract. A facilitator who negotiates a loan with a borrower in Spanish shall offer that borrower the option of receiving a Spanish-language printed disclosure and loan contract.
Source:
Section 352.004 — Disclosure Requirements, https://statutes.capitol.texas.gov/Docs/FI/htm/FI.352.htm#352.004 (accessed May 25, 2024).
