Section 480J-45 - Prohibited practices(a) It shall be a violation of this chapter for a licensee; its control persons, executive officers, directors, general partners, managing members, employees, or independent contractors; or any other person subject to this chapter to: (1) Engage in any act that limits or restricts the application of this chapter, including:(A) Disguising an installment loan as a leaseback transaction or a personal property, personal sales, or automobile title loan; or(B) Disguising loan proceeds as cash rebates for the pretextual installment sale of goods and services;(2) Make an installment loan that requires collateralization, a security interest, or any other pledge of personal property from the consumer;(3) Use a consumer's account number to prepare, issue, or create a check on behalf of the consumer;(4) Charge, collect, or receive, directly or indirectly, charges: (A) For negotiating forms of loan proceeds other than cash;(B) For brokering or obtaining loans;(C) Prepayment fees, or any fees, interest, or charges in connection with an installment loan except those explicitly authorized in this chapter;(5) Fail to make disclosures as required by this chapter or any other applicable state or federal law, including rules or regulations adopted pursuant to state or federal law;(6) Directly or indirectly employ any scheme, device, or artifice to defraud or mislead any consumer, lender, or person;(7) Directly or indirectly engage in unfair or deceptive acts, practices, or advertising in connection with an installment loan;(8) Directly or indirectly obtain property by fraud or misrepresentation;(9) Make an installment loan to any person physically located in the State through the use of the Internet, facsimile, telephone, kiosk, or other means without first obtaining a license under this chapter;(10) Make, in any manner, any false or deceptive statement or representation, including with regard to the rates, fees, or other financing terms or conditions for an installment loan, or engage in bait and switch advertising;(11) Make any false statement or knowingly and wilfully omit any material fact in connection with any reports filed with the division by a licensee or in connection with any investigation conducted by the division;(12) Advertise any rate of interest without conspicuously disclosing the annual percentage rate implied by that rate of interest or otherwise fail to comply with any requirement of the Truth in Lending Act, or any other applicable state or federal laws or regulations;(13) Make installment loans from any unlicensed location;(14) Draft funds from any depository financial institution without written approval of the consumer; provided that nothing in this paragraph shall prohibit the conversion of a negotiable instrument into an electronic form for processing through the Automated Clearing House or similar system;(15) Attempt to collect from a consumer's account after two consecutive attempts have failed, unless the licensee obtains new written authorization from the consumer to transfer or withdraw funds from the account;(16) Make a loan to a consumer that includes a demand feature that was not clearly disclosed in the written agreement pursuant to section 480J-3 or collect or demand repayment of any outstanding balance or unpaid interest or fees except as provided in section 480J-3;(17) Fail to comply with any applicable state or federal laws relating to the activities governed by this chapter; or(18) Fail to pay any fee, assessment, or moneys due to the department.(b) In addition to any other penalties provided for under this chapter, any installment loan transaction in violation of subsection (a) shall be void and unenforceable.Added by L 2021, c 56,§ 2, eff. 1/1/2022.