District of Columbia Administrative Code

2503 APPOINTMENT OF ATTORNEY-IN-FACT OR GENERAL AGENT 2503.1 Each person covered under this chapter who is a nonresident of the District shall appoint or employ and maintain in the District an attorney-in-fact or general agent upon whom all judicial and other process or legal not…

2504 EXAMINATIONS AND INVESTIGATIONS 2504.1 For the purpose of discovering violations of this chapter, the Department may at any time investigate the transactions, business, and records of any person subject to this chapter relating to matters covered by this chapter. 2504.2 If a…

2505 RETAIL INSTALLMENT CONTRACTS: ADDITIONAL DISCLOSURES 2505.1 In addition to the disclosures required pursuant to § 2501, the additional disclosures set forth in this section are required to be set out in a retail installment contract, separately and below any disclosures requ…

2506 RETAIL INSTALLMENT CONTRACTS: FORM AND CONTENT 2506.1 Except in series of sales transactions, each retail installment contract shall be contained in a single document, each page of which shall be signed by both the buyer and the seller. 2506.2 At the top of the first page of…

2507 RETAIL INSTALLMENT CONTRACTS: DELIVERY OF COPY OF CONTRACT 2507.1 Except as provided in § 2507.2, the seller shall deliver to the buyer, or mail to the buyer at his or her address shown on the retail installment contract, a legible, executed, and completed copy of the contra…

2508 ADDITIONAL DISCLOSURES WITH RESPECT TO OPEN END CREDIT 2508.1 If the seller, in connection with an open end credit account offers or arranges for credit life, accident, or health insurance; insurance against loss of or damage to property or against liability arising out of o…

2509 PROHIBITION AGAINST SIGNING BLANK OR INCOMPLETED CONTRACT FORM 2509.1 No person covered by this chapter shall cause or permit any contract or other document relating to a retail installment transaction to be signed by the buyer before all blank spaces (other than signature s…

2510 ACKNOWLEDGMENT OF DELIVERY OF CONTRACT 2510.1 Any acknowledgment by the buyer of delivery of a copy of the contract shall be a rebuttable presumption of that delivery. 2510.2 Acknowledgments may contain statements to the effect that "buyer acknowledges that before buyer sign…

2511 REQUIREMENT FOR PROPERTY INSURANCE PROHIBITED 2511.1 Unless otherwise required by law, no seller, as a condition to the extension of credit, shall require a buyer to obtain insurance against loss of or damage to property which is the subject of a sale, or against liability a…

2512 VALIDITY OF COMPLETION CERTIFICATE 2512.1 In any transaction involving the modernization, rehabilitation, repair, alteration, improvement, or construction of real property, a writing signed by the buyer that the work has been satisfactorily completed shall not be valid or of…

2513 WAIVER OF REGULATIONS PROHIBITED 2513.1 Except as provided in §§ 2519.2 through 2519.4, no provision shall be inserted in any retail installment contract, contract extension, or refinancing agreement designed to nullify and make ineffective the provisions of this chapter, or…

2514 THIRD PARTY TRANSACTIONS 2514.1 Any promissory note taken in connection with a retail installment contract subject to this chapter shall state on its face: "THIS INSTRUMENT IS SUBJECT TO A RETAIL INSTALLMENT CONTRACT." SOURCE: Regulation No. 71-18, 17 DCR 815 (June 28, 1971)…

2515 PROHIBITED CONTRACT FORM PROVISIONS 2515.1 No person subject to this chapter shall use any contract form or any other instrument arising in connection with a retail installment transaction which contains any of the following: (a) Any schedule of payments under which any one …

2516 RECEIPTS: STATEMENT OF ACCOUNT 2516.1 When any payment is made on account of any retail installment contract, the seller receiving the payment shall, if the payment is made in cash, give the buyer a written receipt for the payment including the date and amount of payment. 25…

2517 ACKNOWLEDGEMENT OF PAYMENT IN FULL 2517.1 Promptly on written request and in any event within sixty (60) days after payment of all sums for which the buyer is obligated under a retain installment contract, the seller or assignee shall mail or deliver to the buyer sufficient …

2518 REPOSSESSION 2518.1 If a buyer is in default in the payment of any sum due under a contract subject to this chapter or in the performance of any lawful condition imposed by the contract, the seller or seller's assignee may when authorized by law repossess the goods secured u…

2519 DUTIES ON REPOSSESSION AND BUYER'S RIGHT OF REDEMPTION 2519.1 Within five (5) days after any consumer goods are repossessed, the seller or subsequent assignee shall deliver to the buyer personally, or send to the buyer by registered or certified mail to his or her last known…

2520 DE-REGISTRATION 2520.1 If the Director of the Department or his or her designee believes there is evidence to indicate a persistent pattern of conduct by a registrant in violation of this chapter, the Department may give notice to the registrant of the Department's intent to…

2521 CEASE AND DESIST ORDERS 2521.1 If the Director of the Department has a reasonable basis to believe that any person has violated this chapter, he or she may give notice to that person of intent to hold a hearing to determine whether a cease and desist order with respect to th…

2522 REMEDIES AND PENALTIES 2522.1 Civil fines, penalties, and fees may be imposed as alternative sanctions for any infraction of this regulation pursuant to titles I-III of the Department of Consumer and Regulatory Affairs Civil Infractions Act of 1985. Adjudication of any infra…

2599 DEFINITIONS 2599.1 When used in this chapter, the following terms and phrases shall have the meanings ascribed: Buyer - See: "Retail buyer." Consumer goods - tangible chattels bought by a natural person for use primarily for personal, family, or household purposes, including…

2600 GENERAL PROVISIONS 2600.1 The provisions of this chapter apply to all persons engaged in the District of Columbia in the business of loaning money, except the following: (a) National banks; (b) Licensed bankers; (c) Trust companies; (d) Savings banks; and (e) Building and lo…

2601 LICENSE REQUIREMENTS 2601.1 It shall be unlawful for any person to engage in the District of Columbia in the business of loaning money without first obtaining a money lender's license. 2601.2 A Money Lender's License Class A shall authorize the holder of the license to engag…

2602 APPLICATION FOR LICENSE 2602.1 In addition to the requirements of § 2 of the 1913 Act, as amended (D.C. Official Code § 26-902 (2001)), each application for a money lender's license shall include the verified signature under oath and the true and lawful name of the applicant…

2603 ISSUANCE OF LICENSES 2603.1 Each license certificate shall be issued in the true and lawful name of the individual (or of the person or persons comprising the firm, partnership, voluntary association; or of the joint-stock company or the corporation) authorized by the licens…

2604 CONDUCT OF THE BUSINESS 2604.1 It shall be unlawful for any licensee to conduct this business under any other name than the name stated in the license certificate issued to the licensee. 2604.2 Any licensee desiring to conduct his or her business under a name other than that…

2605 DUTIES OF LICENSEES TO BORROWERS 2605.1 In addition to the duties imposed upon Class A licensees by the 1913 Act, Class A and Class B licensees shall deliver the following to each borrower at the time the loan of money is made: (a) A statement in writing showing in clear and…

2606 INTEREST 2606.1 Interest shall be computed on the actual amount of the loan and shall not be charged or received to any greater rate than the maximum legal rate applicable to the loan of money. 2606.2 No lender or licensee shall charge or receive any unaccrued interest on a …

2607 INSURANCE 2607.1 A licensee may require a borrower to pay the premium on insurance authorized by this section, but not otherwise. 2607.2 A copy of the policy of insurance on which the premium is required by the licensee to be paid by the borrower shall be delivered by the li…

2608 REPOSSESSION 2608.1 No person, except a licensee or the authorized agent of a licensee acting under or by virtue or a right or authority contained in the evidence of indebtedness of, or instrument of security for, a loan of money made by that licensee, shall repossess within…

2609 REPOSSESSION REGISTER 2609.1 Each licensee shall maintain and have available at all times in the licensee's office or other place of business for inspection by the Director or the Director's designee in a separate bound register with non-removable pages to be provided by the…

2610 TRANSACTION REGISTER 2610.1 Each licensee shall keep and maintain in his office or place of business a register, as required by § 4 of the 1913 Act, and each licensee shall enter in the register the data required by the Act. 2610.2 The register shall be maintained from day t…

2611 PENALTIES AND FORFEITURES 2611.1 In addition to all other penalties and forfeitures provided by law, any person violating any provision of this chapter, upon conviction, be fined three hundred dollars ($ 300), imprisoned for not less than thirty (30) days, or more than ninet…

2699 DEFINITIONS 2699.1 When used in this chapter, the following terms and phrases shall have the meanings ascribed: 1901 Act - Sections 1178, 1179 and 1180 of the Act of March 1, 1901, (31 Stat. 1377, ch. 854) as amended. 1913 Act - the Act of February 4, 1913, (37 Stat. 657, ch…

2700 SCOPE 2700.1 Unless specified otherwise, these regulations shall apply to the foreclosure mediation rights and procedures established for the exercise of power of sale of a residential mortgage as authorized in Section 539b of An Act to establish a code of law for the Distri…

2701 NOTICE OF DEFAULT ON RESIDENTIAL MORTGAGE 2701.1 The requirement in the Act that a Notice of Default on Residential Mortgage (Form FM-1) be provided by a lender to each borrower as a condition of issuance of a Notice of Intention to Foreclose a Residential Mortgage shall be …

2702 COMPLETION OF NOTICE OF DEFAULT ON RESIDENTIAL MORTGAGE INSTRUCTIONS 2702.1 The Notice of Default on Residential Mortgage (Form FM-1) shall contain all required information as specified in the applicable form in order to satisfy the requirements of Section 539b of the Act. 2…

2703 MAILING OF NOTICE OF DEFAULT ON RESIDENTIAL MORTGAGE 2703.1 A lender issuing a Notice of Default on Residential Mortgage (Form FM-1) shall mail to the property subject to the residential mortgage and the last known address of the borrower, by certified first-class mail, post…

2704 [RESERVED] SOURCE: Emergency and Proposed Rulemaking published at 58 DCR 2958 (April 8, 2011)[EXPIRED]; as amended by Emergency and Proposed Rulemaking published at 58 DCR 8247 (September 23, 2011)[EXPIRED]; as amended by Final Rulemaking published at 58 DCR 11469 (December …

2705 BORROWER ASSISTANCE AND RESOURCE INFORMATION FORM 2705.1 The Borrower Assistance and Resource Information Form (Form FM-1BA) required by Subsection 2703.3(a) shall be in the form as prescribed by the Commissioner and available on the Commissioner's website at HYPERLINK "http…

2706 MEDIATION ELECTION FORM 2706.1 The Mediation Election Form (Form FM-2) required by Subsection 2703.3(f) shall be in the form as prescribed by the Commissioner and available on the Commissioner's website at HYPERLINK "http://disb.dc.gov" http://disb.dc.gov. 2706.2 Each Mediat…

2707 LOSS MITIGATION APPLICATION 2707.1 Each Loss Mitigation Application that is mailed to a borrower(s) shall include all information required in the Loss Mitigation Application. 2701.2 [REPEALED] SOURCE: Emergency and Proposed Rulemaking published at 58 DCR 2958 (April 8, 2011)…

2708 ELECTION TO PARTICIPATE IN MEDIATION 2708.1 A borrower to whom a Notice of Default on Residential Mortgage (Form FM-1) is mailed pursuant to Section 2703 shall be eligible for mediation prior to the issuance of a Notice of Intention to Foreclose a Residential Mortgage (Form …

2709 RECEIPT OF MEDIATION ELECTION FORM AND LOSS MITIGATION APPLICATION ON BEHALF OF LENDER 2709.1 [REPEALED] 2709.2 [REPEALED] 2709.3 A copy of a Mediation Election Form (Form FM-2) delivered to the Mediation Administrator in compliance with Subsection 2708.2(b) shall constitute…

2710 MEDIATION SCHEDULING 2710.1 Upon the timely delivery of the Mediation Election Form (Form FM-2) by the borrower(s), the Mediation Administrator shall schedule mediation between the borrower(s) and the lender to commence no later than ninety (90) days after the date of mailin…

2711 CANCELLATION OF MEDIATION 2711.1 A mediation party may cancel mediation at any time after a borrower elects to participate in mediation pursuant to Section 2708 by submitting a Cancellation of Mediation Form (Form FM-X1) prescribed by the Commissioner and available on the Co…

2712 ATTENDANCE AT MEDIATION 2712.1 Except as provided in Subsection 2712.2, each mediation party shall attend each scheduled mediation or other meeting required by the Mediator. 2712.2 A mediation party shall not be required to attend mediation or other meeting required by the M…

2713 OBLIGATION TO MEDIATE IN GOOD FAITH 2713.1 Each mediation party or authorized representative of a mediation party shall make a good faith effort to mediate all issues. 2713.2 A good faith effort to mediate requires the lender to conduct the following loss mitigation analysis…

2714 INFORMATION REQUIRED FOR MEDIATION 2714.1 The lender shall, at least five (5) business days prior to the first mediation session scheduled by the Mediation Administrator or Mediator, provide an electronic copy at HYPERLINK "mailto:DISB.mediation@dc.gov" DISB.mediation@dc.gov…

2715 CONFIDENTIAL INFORMATION 2715.1 Except for the documents required to be recorded in subsection 2701.4, any other publicly available information, and financial information included on a Notice of Intention to Foreclose a Residential Mortgage (Form FM-5), any financial stateme…