“Charges” include the 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.
Consumer LoansDefinitions
Section § 22200
This law section defines 'charges' related to loans and services. It includes various costs like interest, fees, and commissions that a lender or agent may collect when dealing with loans or money-related services.
These charges cover processes like arranging or enforcing loans and any other associated services.
loan charges interest fees
Section § 22201
This law defines 'charges' as any kind of profit or benefit that a licensed lender might get from the various aspects of handling a loan, such as negotiating or setting up the loan, or through a related sale or agreement.
“Charges” include any profit or advantage of any kind that a licensee may contract for, collect, receive, or obtain by a collateral sale, purchase, or agreement, in connection with negotiating, arranging, making, or otherwise in connection with any loan.
charges definition profit in loans advantage from loans
Section § 22202
This law section defines what is not considered a 'charge' in certain financial transactions. It clarifies that commissions from insurance, specific lien payments for motor vehicles, court costs (not including attorney fees), certain fees for open-end credit programs, necessary repossession fees, and optional sales of goods or services are excluded from being considered charges. Each exclusion has specific conditions, like limits on fees or percentage caps.
“Charges” do not include any of the following:
(a)CA Financial Code § 22202(a) Commissions received as a licensed insurance agent or broker in connection with insurance written as provided in Section 22313.
(b)CA Financial Code § 22202(b) Amounts not in excess of the amounts specified in subdivision (c) of Section 3068 of the Civil Code paid to holders of possessory liens, imposed pursuant to Chapter 6.5 (commencing with Section 3067) of Title 14 of Part 4 of Division 3 of the Civil Code, to release motor vehicles that secure loans subject to this division.
(c)CA Financial Code § 22202(c) Court costs, excluding attorney’s fees, incurred in a suit and recovered against a debtor who defaults on the
debtor’s loan.
(d)CA Financial Code § 22202(d) Amounts received by a licensee from a seller, from whom the borrower obtains money, goods, labor, or services on credit, in connection with a transaction under an open-end credit program that are paid or deducted from the loan proceeds paid to the seller at the direction of the borrower and that are an obligation of the seller to the licensee for the privilege of allowing the seller to participate in the licensee’s open-end credit program. Amounts received by a licensee from a seller pursuant to this subdivision may not exceed 6 percent of the loan proceeds paid to the seller at the direction of the borrower.
(e)CA Financial Code § 22202(e) Actual and necessary fees not exceeding five hundred dollars ($500) paid in connection with the repossession of a motor vehicle to repossession agencies licensed pursuant to Chapter 11 (commencing with Section 7500) of Division 3 of the Business and
Professions Code provided that the licensee complies with Sections 22328 and 22329, and actual fees paid to a licensee in conformity with Sections 26751 and 41612 of the Government Code in an amount not exceeding the amount specified in those sections of the Government Code.
(f)CA Financial Code § 22202(f) Moneys paid to, and commissions and benefits received by, a licensee for the sale of goods, services, or insurance, whether or not the sale is in connection with a loan, that the buyer by a separately signed authorization acknowledges is optional, if sale of the goods, services, or insurance has been authorized pursuant to Section 22154.
financial charges exclusion insurance commissions possessory liens
Section § 22203
This law defines a 'consumer loan' as a loan you take out mainly for personal, family, or household reasons. It doesn't matter if the loan is backed by a house, a car, or not backed by anything at all. Importantly, when deciding if it's a consumer loan, the lender can rely on a statement you sign saying what you'll use the money for. This statement can be its own document or part of a loan application, and once it's signed, the lender doesn't have to check if you actually use the money that way. Note, real property can't be used as security unless specified otherwise in another section.
“Consumer loan” means a loan, whether secured by either real or personal property, or both, or unsecured, the proceeds of which are intended by the borrower for use primarily for personal, family, or household purposes. For purposes of determining whether a loan is a consumer loan, the lender may rely on any written statement of intended purposes signed by the borrower. The statement may be a separate statement signed by the borrower, or may be contained in a loan application or other document signed by the borrower. The lender shall not be required to
ascertain that the proceeds of the loan are used in accordance with the statement of intended purposes. Nothing in this section shall authorize the taking of real property as security, except as specified in Section 22330.
consumer loan definition secured loan unsecured loan
Section § 22204
This law expands the definition of a "consumer loan" to include loans under $5,000 that are not for personal, family, or household use, as long as the borrower indicates this in writing. Lenders can rely on the borrower's written statement about how the loan proceeds will be used and are not required to verify that the loan is used accordingly.
Furthermore, such loans are considered "consumer loans" if they are secured by the borrower's business income, such as accounts or the right to payment for sold goods or services, through liens or other financial interests.
(a)CA Financial Code § 22204(a) In addition to the definition of consumer loan in Section 22203, a “consumer loan” also means a loan of a principal amount of less than five thousand dollars ($5,000), the proceeds of which are intended by the borrower for use primarily for other than personal, family, or household purposes.
For purposes of determining whether a loan is or is not a consumer loan, the lender may rely on any written statement of intended purposes signed by the borrower. The statement may be a separate statement
signed by the borrower or may be contained in a loan application or other document signed by the borrower. The lender shall not be required to ascertain that the proceeds of the loan are used in accordance with the statement of intended purposes.
(b)CA Financial Code § 22204(b) A consumer loan under this section is a loan secured in the manner provided for in this division if it is secured, in whole or in part, by any lien on, security interest in, assignment of, or power of attorney relative to income arising from the operation of a business by the borrower, such as accounts, and chattel paper, including the right to payment for accounts or chattel paper sold by the borrower prior to or contemporaneously with the making of the loan.
consumer loan loans under $5 000
