Regulatory Alerts2012-12-01
Added · Updated
Final: 2210 Short-Term Consumer Loans
The State Bank Commissioner adopts Regulation 2210, establishing rules for short-term consumer loans defined as loans of $1,000 or less with repayment periods under 60 days. The regulation prohibits licensees from issuing more than five such loans per borrower in a twelve-month period and limits rollovers to four, while mandating a database check prior to origination and immediate data submission for each transaction. Licensees must provide applications in English and Spanish, display fee schedules, and pay an annual surcharge of $1,500 per licensed office plus a per-transaction database fee. The regulation becomes effective on December 11, 2012.