TITLE 28

COMMERCIAL TRANSACTIONS

CHAPTER 46

ADMINISTRATION

PART 5

TITLE LOAN ACT

28-46-508.  Prohibited actions.  No title lender licensee under this part or person required under this part to have such license shall:

(1)  Enter into a title loan agreement with a person less than eighteen (18) years of age, or with anyone who appears to be intoxicated;

(2)  Make any agreement giving the title lender any recourse against the debtor other than the title lender’s right to take possession of the titled personal property and certificate of title upon the debtor’s default, and to sell or otherwise dispose of the titled personal property in accordance with the provisions of chapter 9, title 28, Idaho Code, except where the debtor prevented repossession of the vehicle, damaged or committed or permitted waste on the vehicle or committed fraud;

(3)  Enter into a title loan agreement in which the amount of money loaned, when combined with the outstanding balance of other outstanding title loan agreements the debtor has with the same lender secured by any single titled personal property, exceeds the retail value of the titled personal property as determined by common motor vehicle appraisal guides;

(4)  Accept any waiver, in writing or otherwise, of any right or protection accorded a debtor under this chapter;

(5)  Fail to exercise reasonable care to protect from loss or damage the certificate of title in the physical possession of the title lender;

(6)  Purchase titled personal property used as security for a title loan made by the title lender;

(7)  Enter into a title loan agreement unless the debtor presents a clear title to titled personal property at the time that the loan is made. If the title lender files a lien against such titled personal property without possession of a clear title to such property, the resulting lien shall be void;

(8)  Capitalize or add any accrued interest or fee to the original principal of the title loan agreement during any renewal of the agreement;

(9)  Require a debtor to provide any additional guaranty as a condition to entering into a title loan agreement;

(10) Use any device or agreement, including agreements with affiliated title lenders, with the intent to obtain greater charges than otherwise would be authorized by this part; or

(11) Violate the provisions of this part or any rule promulgated pursuant thereto.

History:

[28-46-508, added 2006, ch. 323, sec. 1, p. 1027; am. 2013, ch. 54, sec. 7, p. 118.]