§ 59-3104. Loan agreement - Disclosure of credit terms - Payment of proceeds - Notices.

A.  Each deferred deposit loan shall be documented by a written agreement executed by both the lender and the debtor.  The written agreement shall contain the name or trade name of the lender, the license number of the lender, the toll-free telephone number of the Department of Consumer Credit, the transaction date, the loan amount, and a statement of the total amount of fees charged.  The written agreement must expressly authorize the lender to defer presentment or deposit of the instrument until a specific date; provided, unless the debtor has entered into an installment payment plan pursuant to Section 3109 of this title, such date shall be not later than forty-five (45) days from the date the instrument is accepted by the lender.

B.  The disclosure of the credit terms of a deferred deposit loan shall be according to and governed by the requirements of Regulation Z.  The definitions and requirements of that act, regulation and commentary shall apply to deferred deposit loans as if those provisions are fully set out in this act.

C.  A completed copy of the written agreement and “Notice of Cancellation” form as prescribed by the Administrator shall be given to and acknowledged in writing by the debtor when the written agreement is signed.

D.  A lender may pay the proceeds of a deferred deposit loan to the debtor by a business instrument, money order or cash.  A lender may not charge the debtor an additional fee for cashing the lender’s business instrument.

E.  A lender shall provide the following notices in a prominent place on each deferred deposit loan agreement in at least twelve-point type:

“A deferred deposit loan is not intended to meet long-term financial needs.  This loan should be used only to meet short-term cash needs.”

“You have the right to rescind this deferred deposit loan no later than 5 p.m. of the next business day following this loan transaction.”

“If you enter into a deferred deposit loan and three consecutive deferred deposit loans, you have the right to pay off the fourth loan pursuant to an installment payment plan, subject to certain conditions.”

F.  A lender shall post at the licensed location a notice of the charges, terms, and effective annual percentage rate for deferred deposit loans made by the lender.

G.  Prior to sale or assignment of instruments held by the lender as a result of a deferred deposit loan, the lender shall place a notice on the instrument in at least twelve-point type to read:

“This is a deferred deposit loan instrument regulated by the Oklahoma Department of Consumer Credit, Title 59, Sections 3101 et seq. and any holder of this check takes it subject to all claims and defenses of the originator.”

and shall include the address and toll-free telephone number of the Department of Consumer Credit.

H.  At the time a debtor enters into a deferred deposit loan transaction, the lender shall provide the debtor with a pamphlet, approved by the Administrator of Consumer Credit, describing the availability of debt management and credit counseling services, the debtor’s right to an installment payment plan and the debtor’s rights and responsibilities in the transaction.  The pamphlet shall indicate a toll-free telephone number for the Administrator that the debtor may contact to receive information relating to debt management and credit counseling services.

Added by Laws 2003, c. 240, § 4, eff. Sept. 1, 2003.  Amended by Laws 2004, c. 557, § 3, emerg. eff. June 10, 2004.