BILL NUMBER: AB 336	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Dickinson

                        FEBRUARY 10, 2011

   An act to add Section 22343 to the Financial Code, relating to
loans.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 336, as introduced, Dickinson. Consumer loans.
   Existing law, the California Finance Lenders Law, provides for the
licensure and regulation by the Commissioner of Corporations of
those engaged in making consumer loans, as defined. The law makes a
willful violation of its provisions a misdemeanor.
   This bill would prohibit a licensee from taking the title to a
vehicle as security for a consumer loan unless the interest rate for
the loan is no greater than 36% and specified disclosures are
provided to the consumer.
   Because a violation of the bill's provisions would be a crime, the
bill would impose a state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 22343 is added to the Financial Code, to read:
   22343.  No licensee shall take the title to a vehicle as security
for any consumer loan unless the following requirements are
satisfied:
   (a) The annual interest rate for the consumer loan is no greater
than 36 percent.
   (b) The licensee provides the consumer with a disclosure that
informs the consumer of the interest rate and any fees or other
charges associated with the consumer loan, the consequences for
defaulting on the consumer loan, and a complete amortization schedule
indicating the total cost to the consumer over the life of the loan.
The licensee shall ensure that the consumer has read and understood
the disclosure.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.