§ 81-19-1. Short title
This chapter shall be known and may be cited as the “Consumer Loan Broker Act.”
§ 81-19-11. Investigation of applicant; issuance or denial of license; time limit for acting on applications
The commissioner shall investigate the financial soundness, experience, character, reputation and general fitness of the applicant to determine if the business will be operated honestly and in compliance with this chapter and the regulations of the department and if the applicant merits the confidence of the community in which the license is to be located. […]
§ 81-19-13. Separate licenses required for each location; movement of licensed location; surrender of license
No more than one (1) place of business may be operated under one (1) license; however, a licensed entity may operate multiple locations, each separately licensed. The license shall be in such form as the commissioner may prescribe and shall be conspicuously posted in the licensed location. A licensee may move the licensed location within […]
§ 81-19-15. Renewal of license; penalty for failure to pay fee
Applications for renewal of a license shall be submitted, along with the payment of the annual fee, on an application form supplied by the commissioner upon which information relating to all of the applicant’s licensed offices shall be set forth in accordance with instructions contained therein, including, in the discretion of the commissioner, such additional […]
§ 81-19-17. Supervision of licensees by commissioner; regulations; examination of licensees’ records, etc.; administrative fines; injunctions against licensees violating chapter; administrative fine
Each licensee shall be subject to the supervision of the commissioner. The commissioner is authorized to make and enforce such reasonable regulations as are necessary and proper for the administration, enforcement and interpretation of the provisions of this chapter. In adopting such regulations, the commissioner shall follow the procedures set forth in the Mississippi Administrative […]
§ 81-19-18. Commissioner authorized to examine persons suspected of conducting business requiring a license
The commissioner, or his duly authorized representative, for the purpose of discovering violations of this chapter and for the purpose of determining whether persons are subject to the provisions of this chapter, may examine persons licensed under this chapter and persons reasonably suspected by the commissioner of conducting business that requires a license under this […]
§ 81-19-19. Deposit of funds collected into Consumer Finance Fund
All funds coming into the possession of the commissioner as a result of this chapter, including all annual fees and examination fees, shall be deposited by the commissioner into the special fund in the State Treasury known as the “Consumer Finance Fund,” and shall be expended by the commissioner solely and exclusively for the administration […]
§ 81-19-21. Contracts to be written; enumeration of charges
A licensee may not enter into an agreement to find and obtain a consumer loan for a borrower unless the agreement is in writing. The contract shall indicate a range acceptable to the borrower of the financing terms, the interest rate, loan charges and fees, and any other charges. If the loan is to be […]
§ 81-19-23. Activities prohibited; violation; penalties; borrower’s remedies
No consumer loan broker may: Charge or collect any service charge or advance fee from a borrower unless and until a loan is actually found, obtained and closed for that borrower, and in no event shall a service charge exceed three percent (3%) of the original principal amount of the loan or a fee of […]
§ 81-19-25. Records of licensee; retention
A licensee shall retain a complete record of each transaction under this chapter for a period of two (2) years from the date of the closing of the loan. The commissioner may prescribe by regulation the form and nature of the records to be retained. All records must be housed at the licensed location unless […]
§ 81-19-27. Separate account required for charges and fees collected by broker; authorization to withdraw from account
Loan charges and fees collected on behalf of a lender by the licensee from a borrower shall be deposited and kept in an account maintained solely for that purpose and totally apart and separate from the monies of the licensee. Withdrawals of loan charges and fees from the separate account shall be only at the […]
§ 81-19-29. Suspension or revocation of license; grounds; commissioner may to enter orders to require persons to refrain from violations
After notice and hearing, the commissioner may suspend or revoke any license if he finds that the licensee has knowingly and without exercising due care: Failed to pay the annual license fee imposed by this chapter or an examination fee imposed by the commissioner under authority of this chapter; or Violated any provision of this […]
§ 81-19-3. Definitions
As used in this chapter: “Advance fee” means any consideration which is assessed or collected prior to the closing of a loan. “Commissioner” means the Commissioner of Banking and Consumer Finance. “Consumer loan” means a transaction by which a lender extends credit for personal, family or household purposes in the form of payment of money […]
§ 81-19-31. Service charge not to be construed as finance charge or interest
Notwithstanding any provision of law to the contrary and specifically Section 75-17-25, Mississippi Code of 1972, a service charge as defined in this chapter shall not be construed to be finance charge or interest when paid to a licensed consumer loan broker by a borrower, or by a lender on behalf of and at the […]
§ 81-19-33. Effect of failure to comply with chapter on underlying transaction
The failure of a licensed consumer loan broker to comply with this chapter in the finding and obtaining of a consumer loan for a borrower shall not affect the validity and enforceability of any debt, mortgage, deed of trust or any other lien interest in real or personal property, and a lender in the consumer […]
§ 81-19-35. Right to hearing upon denial or revocation of license; notice; appeal; review
When any license application is denied or any active license is revoked, the applicant or licensee has a right to a hearing before the commissioner at which the applicant or licensee may be represented by counsel. The demand for a hearing shall be in writing and shall be made within thirty (30) days after receipt […]
§ 81-19-5. License requirement; penalty for violation
No person shall engage in the business of being a consumer loan broker before posting the bond and obtaining the license as required by this chapter. Any person violating this section is guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than One Thousand Dollars ($1,000.00) or […]
§ 81-19-7. Exclusions from chapter coverage
Except as otherwise provided in this section, this chapter does not apply to: Banks, bank holding companies, credit unions, insurance companies, savings and loan associations, savings banks, savings and loan association holding companies, small loan licensees, pawnbrokers, trust companies and their employees when acting on behalf of the employer. Approved mortgagees of the United States […]
§ 81-19-9. License application; fee; surety requirement
An application to become licensed as a consumer loan broker shall be in writing, under oath and in a form prescribed by the commissioner, and shall contain: The full name and address of the applicant; The street address, municipality and county of the proposed licensed location; The complete business and residence address of: The proprietor, […]