Section 81-19-23 - Activities prohibited; violation; penalties; borrower's remedies(1) No consumer loan broker may: (a) 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 Twenty-five Dollars ($25.00), whichever is greater;(b) Advertise: (i) Using false, misleading or deceptive statements regarding the services provided by the consumer loan broker, the amount of service charge or the rates, terms and conditions of any loan which might be obtained through the services of the consumer loan broker;(ii) Using the terms "insured," "bonded," "guaranteed" or "secured" with regard to the consumer loan broker's services or to any loan which might be obtained through the services of the consumer loan broker; or(iii) Without including the full name and address of the consumer loan broker;(c) Act as a lender on any consumer loan transaction from which the consumer loan broker receives a service charge from the borrower;(d) Receive a service charge from a borrower on any consumer loan made by an affiliated lender, meaning a lender under common control or ownership with the consumer loan broker;(e) Receive a service charge on any consumer loan from which the consumer loan broker also receives compensation as a licensed real estate broker or real estate salesman, unless the fact of payment, the amount of the service charge and the identity of the consumer loan broker is fully disclosed to the borrower;(f) Accept an assignment of wages or salary from any borrower for any purpose;(g) Make a false promise in order to influence or induce a person to use the consumer loan broker's services, whether made through agents, employees, advertising or otherwise;(h) Misrepresent or conceal essential or material facts regarding the consumer loan broker's services on any transaction under this chapter;(i) Withhold or suppress information from the commissioner or refuse to permit an examination of the consumer loan broker's records by the commissioner or his agent;(j) Fail to disburse funds in compliance with written agreements or to account for all monies received and disbursed; or(k) Fail to comply with the provisions of this chapter or of the regulations of the commissioner.(2) Any person who knowingly violates any provision of this section shall be guilty of a felony and, upon conviction thereof, shall be punished by a fine of not more than One Thousand Dollars ($1,000.00) or by commitment to the custody of the State Department of Corrections for a term of not more than three (3) years, or by both such fine and commitment.(3)(a) Any borrower injured by a violation of this section may bring an action for recovery of damages. Judgment shall be entered for actual damages but in no case shall be less than the amount paid by the borrower to the loan broker, plus reasonable attorney's fees and costs. An award may also be entered for punitive damages.(b) Any borrower injured by a violation of this section may bring an action against the surety bond or trust account, if any, of the loan broker.(c) The remedies provided under this section are in addition to any other procedures or remedies for any violation or conduct provided for in any other law.Laws, 1992, ch. 485, § 12; Laws, 1999, ch. 505, § 1; Laws, 2004, ch. 370, § 2, eff. 4/20/2004.