SB 979, as introduced, Vidak. California Finance Lenders Law.
Existing law, the California Finance Lenders Law (CFLL), provides for the licensure and regulation of finance lenders and brokers by the Commissioner of Business Oversight. The CFLL defines charges for its purposes to include aggregate interest, fees, bonuses, commissions, brokerage, discounts, expenses, and other forms of costs charged, contracted for, or received by a licensee or any other person in connection with the investigating, arranging, negotiating, procuring, guaranteeing, making, servicing, collecting, and enforcing of a loan or forbearance of money, credit, goods, or things in action, or any other service rendered. The CFLL also specifies that charges do not include, among other things, fees paid to a licensee for the privilege of participating in an open-end-credit program, as provided.
This bill would make nonsubstantive changes to that provision specifying items that are not charges for purposes of the CFLL.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 22202 of the Financial Code is amended
2to read:
“Charges” do not include any of the following:
P2 1(a) Commissions received as a licensed insurance agent or
2broker in connection with insurance written as provided in Section
322313.
4(b) Amounts not in excess of the amountsbegin delete specifiedend deletebegin insert set forthend insert in
5subdivision (c) of Section 3068 of the Civil Code paid to holders
6of possessory liens, imposed pursuant to Chapter 6.5 (commencing
7with Section 3067) of Title 14 of Part 4 of Division 3 of the Civil
8Code, to release motor vehicles that secure loans subject
to this
9division.
10(c) Court costs, excluding attorney’s fees, incurred in a suit and
11recovered against a debtor who defaults on his or her loan.
12(d) Fees paid to a licensee for the privilege of participating in
13an open-end credit program, which fees are to cover administrative
14costs and are imposed upon executing the open-end loanbegin delete agreementend delete
15begin insert agreement,end insert and on annual renewal dates or anniversary dates
16thereafter.
17(e) Amounts received by a licensee from a seller, from whom
18the borrower obtains money, goods, labor, or services on credit,
19in connection with a transaction under an open-end credit program
20that are paid or deducted from
the loan proceeds paid to the seller
21at the direction of the borrower andbegin delete whichend deletebegin insert
thatend insert are an obligation
22of the seller to the licensee for the privilege of allowing the seller
23to participate in the licensee’s open-end credit program. Amounts
24received by a licensee from a seller pursuant to this subdivision
25may not exceed 6 percent of the loan proceeds paid to the seller
26at the direction of the borrower.
27(f) Actual and necessary fees not exceeding five hundred dollars
28($500) paid in connection with the repossession of a motor vehicle
29to repossession agencies licensed pursuant to Chapter 11
30(commencing with Section 7500) of Division 3 of the Business
31and Professionsbegin delete Codeend deletebegin insert Code,end insert provided that the licensee complies
32with Sections 22328 and 22329, and actual fees paid to a licensee
33in conformity with
Sections 26751 and 41612 of the Government
34Code in an amount not exceeding the amount specified in those
35begin delete sectionsend deletebegin insert
provisionsend insert of the Government Code.
36(g) Moneys paid to, and commissions and benefits received by,
37a licensee for the sale of goods, services, or insurance, whether or
38not the sale is in connection with a loan, that the buyer by a
39separately signed authorization acknowledges is optional, if sale
P3 1of the goods, services, or insurance has been authorized pursuant
2to Section 22154.
O
99