6.1-475 - (Repealed effective October 1, 2010) Advertising and disclosures.
§ 6.1-475. (Repealed effective October 1, 2010) Advertising and disclosures.
A. Any facilitator who advertises the availability of a refund anticipationloan shall not directly or indirectly represent the loan as a customer'sactual refund. Any advertisement that mentions a refund anticipation loanshall state conspicuously that it is a loan and that a fee or interest willbe charged by the lending institution. The advertisement shall also disclosethe name of the lending institution.
B. Every facilitator who offers to facilitate, or who facilitates, a refundanticipation loan to a customer shall display a refund anticipation loanschedule showing the current fees for refund anticipation loans facilitatedat the office, for the electronic filing of a customer's tax return, forsetting up a refund account, and any other related activities necessary toreceive a refund anticipation loan. The fee schedule shall also include astatement indicating that a customer may have the tax return filedelectronically without also obtaining a refund anticipation loan.
C. The posting required by subsection B shall be made in not less than28-point type on a document measuring not less than 16 by 20 inches. Thepostings required in this section shall be displayed in a prominent locationat each office where any facilitator is offering to facilitate or isfacilitating a refund anticipation loan.
D. Prior to an applicant's:
1. Completion of the refund anticipation loan application, a facilitator thatoffers to facilitate a refund anticipation loan shall provide to theapplicant a clear disclosure containing all of the following information:
a. The refund anticipation loan fee schedule.
b. That a refund anticipation loan is a loan and is not the applicant'sactual income tax refund.
c. That a customer can file an income tax return electronically withoutapplying for a refund anticipation loan.
d. The average amount of time, according to the Internal Revenue Service,within which a customer who does not obtain a refund anticipation loan canexpect to receive a refund if a customer's return is filed or mailed asfollows:
(1) Filed electronically and the refund is deposited directly into acustomer's bank account or mailed to the customer.
(2) Mailed to the Internal Revenue Service and the refund is depositeddirectly into a customer's bank account or mailed to a customer.
e. That the Internal Revenue Service does not guarantee that it will pay thefull amount of the anticipated refund and it does not guarantee a specificdate that a refund will be deposited into a customer's bank account or mailedto a customer.
f. That the borrower is responsible for the repayment of the refundanticipation loan and the related fees in the event that the tax refund isnot paid or not paid in full.
g. The estimated time within which the loan proceeds will be paid to theborrower if the loan is approved.
h. The fee that will be charged, if any, if the applicant's loan is notapproved.
2. Consummation of the refund anticipation loan transaction, a facilitatorshall provide to the applicant, in either written or electronic form, thefollowing information:
a. The estimated total fees for obtaining the refund anticipation loan.
b. The estimated annual percentage rate for the applicant's refundanticipation loan, using the guidelines established under the federal TruthIn Lending Act (15 U.S.C. § 1601 et seq.).
c. The various costs, fees, and finance charges, if applicable, associatedwith receiving a refund by mail or by direct deposit directly from theInternal Revenue Service, a refund anticipation loan, a refund anticipationcheck, or any other refund settlement options facilitated by the facilitator.
(2006, c. 399.)