Title loan lenders and borrowers must sign a written title loan agreement, include required information, give the borrower a copy, and the lender may keep the loan property until repayment.
537.008 Title loan agreement.—(1) At the time a title loan lender makes a title loan, the lender and the borrower shall execute a title loan agreement, which shall be legibly typed or written in indelible ink and completed as to all essential provisions prior to execution by the borrower and lender. The title loan agreement shall include the following information:(a) The make, model, and year of the titled personal property to which the loan property relates. (b) The vehicle identification number, or other comparable identification number, along with the license plate number, if applicable, of the titled personal property to which the loan property relates. (c) The name, residential address, date of birth, physical description, and social security number of the borrower. (d) The date the title loan agreement is executed by the title loan lender and the borrower. (e) The identification number and the type of identification, including the issuing agency, accepted from the borrower. (f) The amount of money advanced, designated as the “amount financed.” (g) The maturity date of the title loan agreement, which shall be 30 days after the date the title loan agreement is executed by the title loan lender and the borrower. (h) The total title loan interest payable on the maturity date, designated as the “finance charge.” (i) The amount financed plus finance charge, which must be paid to reclaim the loan property on the maturity date, designated as the “total amount of all payments.” (j) The interest rate, computed in accordance with the regulations adopted by the Federal Reserve Board pursuant to the federal Truth in Lending Act, designated as the “annual percentage rate.” (2) The following information shall also be printed on all title loan agreements:(a) The name and physical address of the title loan office. (b) The name and address of the Department of Financial Services as well as a telephone number to which consumers may address complaints. (c) The following statement in not less than 12-point type that:1. If the borrower fails to repay the full amount of the title loan on or before the end of the maturity date or any extension of the maturity date and fails to make a payment on the title loan within 30 days after the end of the maturity date or any extension of the maturity date, whichever is later, the title loan lender may take possession of the borrower’s motor vehicle and sell the vehicle in the manner provided by law. If the vehicle is sold, the borrower is entitled to any proceeds of the sale in excess of the amount owed on the title loan and the reasonable expenses of repossession and sale. 2. If the title loan agreement is lost, destroyed, or stolen, the borrower should immediately so advise the issuing title loan lender in writing. (d) The statement that “The borrower represents and warrants that the titled personal property to which the loan property relates is not stolen and has no liens or encumbrances against it, the borrower has the right to enter into this transaction, and the borrower will not apply for a duplicate certificate of title while the title loan agreement is in effect.” (e) A blank line for the signature of the borrower and the title loan lender or the lender’s agent. All owners of the titled personal property must sign the title loan agreement. (3) At the time of the transaction, the title loan lender shall deliver to the borrower an exact copy of the executed title loan agreement. (4) Upon execution of a title loan agreement, the title loan lender may take possession of the loan property and retain possession of such property until such property is redeemed. The borrower shall have the exclusive right to redeem the loan property by repaying all amounts legally due under the agreement. When the loan property is redeemed, the lender shall immediately return the loan property and commence action to release any security interest in the titled personal property. During the term of the agreement or any extension of the agreement, a title loan lender may retain physical possession of the loan property only. A title loan lender shall not require a borrower to provide any additional security or guaranty as a condition to entering into a title loan transaction.