Facilitators must disclose specified refund-anticipation-loan information to borrowers before closing, and Spanish-language borrowers get an option for Spanish printed disclosures and loan contracts in certain cases.
Sec. 352.004. DISCLOSURE REQUIREMENTS. (a) A facilitator to which Section 352.002 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. Added by Acts 2007, 80th Leg., R.S., Ch. 135 (H.B. 1344), Sec. 1, eff. September 1, 2007. Renumbered from Finance Code, Section 351.004 by Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 27.001(17), eff. September 1, 2009. Amended by: Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 27.002(5), eff. September 1, 2009.