5 Miss. Code. R. 3-6-6.5 - Written Explanation of Fees Required, Prepayment and Right of Rescission

1.

General. Before a credit availability transaction is finalized, the Licensee must provide each prospective account with "a written explanation of the fees and charges to be charged and the due dates for all payments.

2. All Fees and Charges Must Be Included.

All fees and charges allowed under the MCAA which the Licensee intends to collect from the account holder must be clearly disclosed in the credit availability agreement. This includes any Origination Fee, Handling Fee, late fees, and collection fees. Any fee or charge not included in the agreement cannot be assessed and collected.

3. Style, Content and Method of Executing Prepayment.

a. The style, content, and method of executing the required written explanation must comply with the federal truth-in-lending laws and must contain a statement that the account holder may prepay the unpaid balance in whole or in part at any time. No penalty shall be incurred by the account holder as a result of prepayment.

b. At a minimum, the written explanation must include:

(i) The amount of the transaction;

(ii) The date the agreement was entered into;

(iii) An amortization schedule which is a description of the payments including the distribution of payments between principal and fees;

(iv) The name and address of the licensed office;

(v) The name of the person primarily obligated on the agreement;

(vi) The amount of the principal;

(vii) The agreed rate of charge stated on a percent per year basis and the amount in dollars and cents;

(viii) The percentage of the daily or monthly rate; and

(ix) All other disclosures required pursuant to state and federal law.

4. If an existing loan is paid-off via a new loan, refinanced, rolled-over, etc., the existing Loan number or account number and the total amount paid-off via the new loan shall be itemized on the new loan agreement.

5. Right of Rescission.

The contract for any credit availability agreement shall include, along with other state or federal law requirements, the right for an account holder to rescind the transaction within one (1) business day; provided, however, that if the account holder accepts funds from the credit availability Licensee prior to the expiration of the one-day rescission period, any Origination Fee charged shall be nonrefundable.

Notes

5 Miss. Code. R. 3-6-6.5

Miss. Code Ann. § 75-67-621.

Adopted 3/3/2021