The Arizona Title Loan Association strongly believes that Auto Title Loan transactions should be conducted in a responsible manner, with all required consumer protections. To that end, Association members abide by the following mandated Best Practices to ensure responsible conduct among lenders and with consumers.
As a condition of membership, members must abide by all of the Best Practices and pledge their commitment to them.
Association members must abide by the following Best Practices:
- A member of the Association must be currently licensed by the Arizona Department of Financial Institutions to make Secondary Motor Vehicle Finance Transactions (hereinafter “Auto Title Loans”) and the member’s license must be in good standing with the Department.
- A contract between a member of the Association and the consumer must fully outline the terms of the Auto Title Loan transaction. The contract will make the following clearly visible to the consumer prior to entering into an Auto Title Loan Transaction:
- All Federal and Arizona mandatory lending disclosures.
- All applicable fees.
- A member of the Association will not charge finance rates in excess of the maximum finance rates permitted under A.R.S. §44-291(G).
- A member of the Association will only charge fees, in addition to the finance rate, that are permitted by state law.
- A member of the Association will not advertise its services in any false, misleading, or deceptive manner, and will promote only the responsible use of Auto Title Loan Services.
- A member of the Association will provide consumers the right to rescind, at no cost, an Auto Title Loan transaction on or before the close of the following business day.
- A member of the Association choosing to pursue past due accounts shall comply with all applicable federal and state laws, rules and regulations pertaining to the collection of consumer debts. Under no circumstance shall a member use unlawful threats, intimidation, or harassment to collect accounts.
- Upon receipt of collected funds for a loan pay-off, a member of the Association will promptly release the certificate of vehicle title without condition to the payment of a pay-off fee or a title return fee.
- A member of the Association shall comply with all provisions of Uniform Commercial Code, Title 47, Chapter 9, Article 6, in the repossession and disposition of vehicles securing Auto Title Loans. A member of the Association will account to the consumer for all proceeds of disposition and return any surplus proceeds from the sale of a vehicle to the consumer.
- A member of the Association shall implement procedures to inform consumers of the intended use of Auto Title Loans using the following notification: “Auto Title Loan services should be used to help with a temporary financial need.”
- A member of the Association shall prominently display the Association Membership Seal in all licensed locations to alert consumers of the affiliation with the Association.
- A member of the Association will abide by all state and federal laws and all Arizona Department of Financial Institutions regulations applicable to Auto Title Loan transactions.
- A Member of the Association will not offer Auto Title Loans from the same location as a retail automobile dealer.
- To the extent that any Member does business with a Military “Covered Person” as defined by federal law, Members will comply with any applicable federal laws when doing business with military and related “Covered Persons.”
- A member of the Association will be expected to report violations of these Best Practices to the Association, which will investigate the matter and take appropriate action.