§ 53-181. Statements and information to be furnished to borrowers; power of attorney or confession of judgment prohibited.
AI-assisted research summary: Licensees must give borrowers specified loan information at closing, make charge schedules available and filed, and they may not take confessions of judgment or allow powers of attorney for confessing judgment except after a missed required payment.
(a)Contents of Statement Furnished to Borrower. —At the time a loan is made, the licensee shall deliver to the borrower, or if there be two or more borrowers, to one of them a copy of the loan contract, or a written statement, showing in clear and distinct terms: (1)The name and address of the licensee and one of the primary obligors on the loan; (2)The date of the loan contract; (3)Schedule of installments or descriptions thereof; (4)The cash advance; (5)The face amount of the note evidencing the loan; (6)The amount collected or paid for insurance, if any; (7)The amount collected or paid for filing or other fees allowed by this Article; (8)The collateral or security for the loan; (9)If the loan refinances a previous loan, the following relating to the refinanced loan: (i) the principal balance due; (ii) interest charged that is included in the new loan; and (iii) rebates on any credit insurance, listed separately. (10)In addition to any disclosures otherwise provided by law, a licensee soliciting loans using a facsimile or negotiable check shall provide the disclosures required by G.S. 75-20(a). (b)Schedule of Charges, etc., to Be Made Available; Copy Filed with Commissioner. —Each licensee doing business in North Carolina shall make readily available to the borrower at each place of business such full and accurate schedule of charges and insurance premiums, including refunds and rebates, on all classes of loans currently being made by such licensee, as the Commissioner shall prescribe, and a copy thereof shall be filed in the office of the Commissioner of Banks. (c)Power of Attorney or Confession of Judgment Prohibited. —No licensee shall take any confession of judgment or permit any borrower to execute a power of attorney in favor of any licensee or in favor of any third person to confess judgment or to appear for the borrower in any judicial proceeding and any such confession of judgment or power of attorney to confess judgment shall be absolutely void. Nothing in this subsection prohibits a licensee from taking a confession of judgment from a borrower following the borrower’s failure to make a payment as required under the loan contract. History: History.1955, c. 1279; 1961, c. 1053, s. 1; 1989, c. 17, s. 9; 2001-519, s. 6; 2022-75, s. 11.