Register / Volume XXXIV, Issue 5 / March 14, 2023
This is an
amendment to 12.18.9 NMAC, Section 8, effective 03/29/2023.
22.214.171.124 MANDATORY DISCLOSURE OF LOAN
INFORMATION: All small loan companies
engaged in the business of making refund anticipation loans must provide a form
to consumers that includes the following:
A. a statement that
“refund anticipation loan” means
a loan that is secured by or that the creditor arranges or expects to be
repaid, directly or indirectly, from the proceeds of the consumer's federal or
state personal income tax refunds or tax credits, including any sale,
assignment or purchase of a tax refund or tax credit at a discount or for a
B. a list of the annual percentage rate and all fees that
the borrower may be charged upon entering the refund anticipation loan
C. the estimated time to which the consumer may receive
the proceeds from their anticipated tax refund or tax credit; and
D. the following statement in at least 12-point bold
(1) This agreement is considered to be
a loan and not your actual tax refund or tax credit. You are borrowing money against your
anticipated tax return.
(2) Neither the internal revenue
service (IRS) nor the New Mexico taxation and revenue department guarantees
that you be paid the full anticipated amount of a tax refund or tax credit, nor
do they guarantee that a tax refund or tax credit will be deposited into your
bank account or mailed on a specific date.
(3) You are responsible for the full
repayment of this refund anticipation loan and for the payment of the total
interest, fees, and charges incurred.
(4) Prior to executing a refund
anticipation loan agreement, a small loan licensee shall require the borrower
to provide a hand written or electronic signature acknowledging that the
borrower understands the all required disclosures and has received a copy of
the required disclosure. A copy of the
acknowledgment form must be permanently kept with the loan records.
(5) This business is licensed and regulated by the New Mexico
Regulation and Licensing Department, Financial Institutions Division, P.O. Box
25101, 2550 Cerrillos Road, Santa Fe, New Mexico 87504. To report any unresolved problems or complaints,
contact the division by telephone at (505) 476-4885 or visit the website: [
[126.96.36.199 NMAC - N, 09/15/2018; A, 03/29/2023]