This law section states that a lender can't demand or collect any fees or interest unless they actually give out a loan. In other words, you don't owe anything until money is lent to you.

This law states that a lender can't charge any fees or interest on a loan of $5,000 or more unless the loan is actually given to the borrower. However, if the loan isn't completed because the borrower didn't disclose important information like existing debts or liens, or if they fail to finish the application, the lender can charge for the actual costs they incurred preparing the loan.

This section of the law states that if a loan contract appears to be unfairly one-sided or oppressive under the guidelines of another law (Section 1670.5 of the Civil Code), it will be considered against the rules of this particular division. If a loan is deemed unfair, it will face penalties as outlined in this section of the law.

This law describes how much interest lenders can charge based on the amount of the loan. For loans up to $225, lenders can charge 2.5% per month. For the portion of loans over $225 and up to $900, they can charge 2% per month. For amounts over $900 up to $1,650, the rate is 1.5% per month. Any loan amount over $1,650 has a maximum charge of 1% per month.

However, these rules don't apply if the loan is at least $2,500, as those are treated differently.

This section outlines how a lender can charge interest on a loan differently than what's typically allowed by another law. The lender can choose between two interest rate options. One option allows charging up to 1.6% monthly on the unpaid loan balance. The second option involves a complex calculation using the Federal Reserve's lending rate, which also applies monthly percentages and adjustments. However, these alternatives don't apply to loans over $2,500, as defined in another section.

This law regulates loans between $2,500 and $10,000, allowing finance lenders to charge interest at a rate of up to 36% annually plus the Federal Funds Rate, which is determined monthly by the Federal Reserve.

Lenders must report borrowers' payment performance to a major credit reporting agency. Existing lenders as of January 1, 2020, must comply by mid-2020, while new lenders get one year post-licensure to start reporting.

Before giving out loans, lenders must provide borrowers with a credit education program covering topics like establishing, improving, and checking credit scores, as well as disputing errors in credit reports. This education must be free, and borrowers aren't required to participate.

This law allows lenders to charge an extra administrative fee on loans up to $2,500, which is earned immediately when the loan is made. For loans up to $2,500, the fee can be the smaller of 5% of the loan amount or $50. For loans over $2,500, the fee can be up to $75. Borrowers can't be charged an administrative fee again when refinancing unless a year has passed since the last fee. Only one administrative fee is allowed per loan until it's fully repaid. The exact amount of the loan needs to be calculated following specific rules from another section.

This law states that nobody is allowed to charge, agree to charge, or actually receive any payment more than what this article allows. When you add up all charges from a finance lender, broker, or anyone else involved, they can't go over the maximum rate that this article sets.

This law outlines how charges on loans should be calculated in California. Charges must be calculated monthly as a percentage of the outstanding loan balance and expressed in the loan agreement. They should be based on actual days passed, assuming each month is 30 days. Loan agreements must require payments in near-equal installments, with the first due between 15 days and 45 days after the loan starts. Notably, certain student loans are exempt from this payment schedule, and open-end loans are excluded from these rules.

This law states that if you have a loan, the lender cannot charge you a fee or penalty for paying it off early, unless the loan is secured by real estate (like a mortgage).

This law allows lenders to charge a single annual interest rate on the leftover amount of a loan, calculated based on the actual number of days passed. The interest rate must not exceed what would be charged using the tiered rates mentioned in a different rule, provided the loan is paid as agreed. If a borrower pays off their loan completely by the third payment due date, the charges must be recalculated based on the number of days passed.

This law says that generally, when giving out loans, you can't charge interest or fees in advance or add those charges into the loan amount, except in certain cases mentioned elsewhere in the law. However, if a new loan includes an unpaid balance from an old loan, the new loan can include any interest that was already accumulated on the old loan.

Also, when a loan is made, the lender must give the borrower the full amount of the loan in cash or as directed by the borrower.

This law says that if the total amount of rebates or refunds a lender is supposed to give when a loan is paid off is less than one dollar, the lender doesn't have to actually make those small refunds. Also, it prohibits lenders from structuring payments in such a way that deliberately avoids having to issue a rebate or refund of less than one dollar.

If you're taking out a loan under this law, the lender can't make you purchase anything else along with it. However, they can offer you certain types of insurance without violating this rule. Some specific insurance policies are not considered additional purchases under this law.

This law says that when someone is making a loan, they can't force the borrower to sign extra sales agreements other than certain specified ones like pledges, assignments, or mortgages on personal property. The lender can also have deeds of trust or liens on real property if allowed by other rules in this division. Additionally, certain types of insurance like credit life and credit disability insurance are allowed.

This law explains that insurance on property used as loan collateral isn't considered a collateral sale under certain conditions. For this to hold: the insurance must be sold at regular rates by licensed brokers, cover the collateral property, be for a reasonable length of time, and benefit the borrower or their family if it's personal property. Title insurance must not exceed the loan amount and should be issued by authorized companies at competitive rates. Finally, insurance renewals are only valid if the loan extension involves an additional $1,000 or more. The law doesn't apply to loans over $10,000 or specific licensed lenders.

This law section clarifies that credit insurance isn't considered a separate transaction when it's provided correctly under the Insurance Code. Credit insurance includes types like credit life and disability insurance, which protects loan payments if you're unemployed or unable to work. The borrower must consent to the insurance, and the terms need approval from the Insurance Commissioner.

If you pay off your loan early, you'll get a refund based on an approved formula. Costs for credit life and disability insurance can't exceed certain limits. Any charges are explained to the borrower, who receives a copy of the insurance policy. This insurance isn't mandatory for getting a loan, and it's effective once the loan is active. It’s important to note that these rules don't apply to loans over $10,000.

This law covers credit disability insurance, which is insurance that helps with loan payments if the borrower gets disabled. The insurance shouldn't cover disabilities lasting less than 14 days, but it can cover longer periods. If offered, the insurance can have retroactive coverage, meaning it can go back to cover earlier dates, if specified in the policy. However, it must also be available without retroactive coverage, and costs for both options need to be clearly stated. Payments from insurance are adjusted based on the actual period the borrower is disabled. This insurance can be paid monthly or annually, but the cost should match the period of the loan. It can't be for a longer time than the loan itself, and the payout for open-end loans can't exceed the monthly due amount. This rule doesn't apply to loans of $10,000 or more.

This section allows a lender to charge the borrower for the cost of a lot book report instead of title insurance. This cost is separate and does not count towards the maximum allowable charges that a lender can impose.

If you're taking out a loan that uses real estate as collateral, the lender can charge you for the appraisal, but only up to the actual cost of the appraisal. This fee can only be charged if the loan company receives a written appraisal from a qualified appraiser. Additionally, you can't be charged for another appraisal on the same property unless you've taken out a new or extra loan and it's been more than a year since the last appraisal. This appraisal fee doesn't count towards other fees or limits set by this law.

This law allows a lender to charge a borrower a fee for an automated valuation model (AVM), which is a computer-based property value estimate, as long as it's not more than the cost paid to a third party. Borrowers cannot be charged for both an AVM and a traditional appraisal for the same property at the same time. Only one fee for property evaluation can be collected per transaction unless a year has passed or there's a new loan.

Borrowers must be informed of their right to get a copy of the AVM result if they paid for it. They have to request this in writing within 90 days after being notified about their loan application decision. The lender must provide the AVM result within 15 days of receiving the request or the AVM itself, whichever is later.

The notice to borrowers must be clear, in bold type, and separate from other documents, explaining that an AVM is not a formal appraisal and providing details on how to request the result. This section does not affect AVMs used by lenders for their own properties or for modifying existing loans without charging the borrower. Importantly, AVMs can't replace appraisals required by law.

This law states that when a lender gives out a loan using real estate as collateral, they must follow certain rules. First, they can't fail to pay out the loan money as agreed once the borrower has accepted the loan offer. Second, they cannot purposely delay closing the loan just to charge the borrower more in interest or fees.

This law says that for loans secured by real estate, a reasonable escrow fee can be charged. The fee is reasonable if paid to a properly licensed escrow company, or to someone who doesn’t need to be licensed, as long as it's similar to what other escrow companies charge. Importantly, this fee doesn't count towards the maximum charges allowed by other laws in this section.

If you have a loan backed by real estate, there's a fee involved when the trust deed is transferred back after you've paid off the loan. The person or company who gave you the loan can collect this fee to send it to the trustee handling the transfer. This fee doesn't count towards any other charges or limits that might usually apply to the loan.

This law allows a lender to charge a fee up to $15 if a check, withdrawal order, or share draft bounces because the bank won't accept it. This fee is separate and not part of other fees or the maximum charges allowed for the loan.

This law allows lenders to charge a late fee if borrowers miss their payment deadlines. If the payment is late by at least 10 days, the fee can be up to $10. If it’s late by 15 days or more, the fee can go up to $15. Lenders can't charge more than once for the same missed payment, and the late fee can be charged when the payment is missed or later. If deducting the fee causes another missed payment, no extra fee can be charged. These late fees aren't considered interest or other charges when calculating the total cost of a loan.

For open-end loans, like credit cards, the late fee can only be applied if there's at least 20 days between when the bill is sent and when the payment is due. This rule doesn’t apply to certain precomputed loans.

This law outlines rules for credit loss-of-income insurance, which helps cover loan payments if someone loses their job. To start, benefits kick in after up to 45 days of unemployment, and it might be backdated. Important details about the insurance must be clearly disclosed, such as coverage terms and exclusions. Buyers must sign a certificate indicating the insurance is voluntary, with bold text stating it's not required for the loan and can be canceled within 15 days for a full refund.

The insurance ensures up to four benefit payments during unemployment, and during the first 60 days, half the benefits mentioned in the policy are available. If credit disability insurance is offered, loss-of-income coverage must be available separately too.

Even if someone can't claim unemployment benefits due to their employer not paying into the state fund, benefits won't be denied. Retroactive coverage involves prorated payments based on unemployment duration, with terms like waiting periods clearly defined. If unemployment lasts longer than stated benefit payments, the final payout adjusts for initial prorated payments. A benefit payment matches a loan installment or an amount in the insurance contract, whichever is lower, ensuring it's not less than a loan installment unless multiple income sources exist.

This statute doesn't affect loans of $10,000 or more or certain licensed lenders.

This law states that if a loan is legally made outside of California, it can still be enforced in California. However, the charges like interest and fees can't be more than what would be allowed in California for a similar loan.

If someone in California tries to collect money from a loan that was made in another state, they must follow California's rules about the maximum interest and fees allowed for similar loans made within California. If they demand more than what's allowed in California for loans of the same size, they have to adhere to California's laws.

This law states that if someone makes or negotiates a loan in California with the intent of bypassing California's financial regulations by moving the loan out of state, those loan activities are still subject to California law.

If you have a business license, you must clearly show a detailed list of your fees and how you calculate them at your business location. This list needs the commissioner's approval.

This law states that no one can charge, ask for, or receive more interest or fees on a loan or credit transaction than the law allows, unless they are specifically authorized. This rule applies to anyone who tries to get around the rules through tricks or deceptive methods to charge more than permitted.

This section makes it illegal for lenders to encourage borrowers to divide a loan among different lenders to get a higher interest rate than legally allowed. Borrowers cannot be obligated to multiple loans with the same lender for this purpose, unless required by federal laws like the Equal Credit Opportunity Act. The rule applies to spouses as well, whether they share the loan or not.

This law involves loans secured by liens on motor vehicles, meaning the car is used as collateral for the loan. If a car is repossessed or surrendered because the loan wasn't paid, the lender must notify the borrower and anyone else responsible for the loan at least 15 days before they plan to sell the car. The notice must include details like how to pay off or reinstate the loan, and the possibility of extending the redemption period by 10 days.

If the car's sale doesn't cover the loan balance, the borrower is still responsible for the remaining debt, but only if the notice is given correctly within 60 days. After selling the car, the lender must provide an accounting of the sale proceeds within 45 days. If there's extra money from the sale, it goes back to the borrower within that same timeframe.

If you have a loan secured by your car, lenders can't demand full payment or take your car back unless you break the loan rules. Filing for bankruptcy doesn't count as a rule break. If your car gets repossessed due to a real rule break, you might be able to get the loan back on track by fixing the issue, like paying missed payments or getting insurance. You get one chance to fix this per year and only twice for the entire loan duration. The lender must prove their decision if they refuse to let you fix the loan issue.

If someone who has the right to repossess a vehicle gets certain information from the Business and Professions Code, they can't give the job of finding or repossessing the vehicle to someone else without telling them about this information at the same time and in the same way they give the job.

This California law states that a lender cannot use a deed of trust, mortgage, or lien on real property as security for a loan, unless it's a lien that automatically happens by law when a judgment is recorded. However, this rule does not apply to loans that are $5,000 or more, where the specifics are measured according to Section 22251.

This law states that when issuing loans, licensees cannot require borrowers to agree to a confession of judgment or give a power of attorney, except if it's for transferring ownership of a motor vehicle or mobile home when the loan is made.

This law states that lenders must clearly and accurately detail the loan amount, the duration of the loan, and the interest rate or annual percentage rate (APR) on any payment agreements or notes. This ensures transparency and complies with federal regulations.

This law states that licensed lenders cannot accept any documents that have blank spaces to be filled in later after they've already been signed.

This law sets limits on how long loans can be scheduled for repayment, based on the loan's principal amount. For loans less than $500, the maximum term is 24 months and 15 days, increasing in length for higher loan amounts: $500 - $1,500 can be up to 36 months and 15 days, $1,500 - $3,000 can be 48 months and 15 days, and $3,000 - $10,000 can be up to 60 months and 15 days.

Loans secured by real estate with a principal of $5,000 or more are not subject to the 60-month limit. Moreover, loans of $2,500 - $10,000 must have a term of at least 12 months. However, this law doesn't apply to open-end loans, certain student loans under federal laws, and certain healthcare-related loans.

This law explains that if someone pays money or provides credit or goods in exchange for the future payment of wages or salaries, it is considered a loan. The difference between what the person receives and what they pay back is viewed as interest on that loan.

However, this law doesn't change other existing laws about assigning wages, nor does it allow wage assignments.

This law section states that a licensed lender can charge and collect specific fees and premiums. These include fees the lender pays to public officers for filing or recording loan-related documents, and certain insurance premiums as specified by federal regulations. These costs don't count towards the maximum charges allowed under this law.

This law sets out what finance lenders in California must do when issuing loans. They need to give the borrower a clear statement with details about the loan, like the lender's name, address, license number, the loan amount, due date, interest rates, and any security used for the loan.

If a broker is involved, lenders have to get a signed statement from the borrower about the broker's role and keep these records for three years. Borrowers can repay loans early without restrictions, though lenders might apply certain charges first. Upon full repayment, any security like deeds or notes must be properly released and marked as paid.

Receipts must be provided for any payments made during the loan period. When loans are paid off, lenders should return documents to borrowers, except for those needed for other legal actions. Specific standards are set for document storage and reproduction, ensuring accuracy and authenticity.

This law requires licensed brokers to provide detailed and clear information to borrowers and finance lenders during loan arrangements. When a final loan agreement is made, the broker must give the borrower a statement containing important details about the broker, lender, and the agreement terms. This statement must also be shared with the finance lender. Any payments to the broker must be receipted with detailed information about the payment, which should be shared with the lender if someone other than the lender makes a payment. The broker must ensure full compliance with certain requirements when a loan is paid off. Additionally, before any signed document or fee is accepted, potential borrowers must receive a statement with the broker and lender details.

This law allows lenders to take a security agreement that not only protects the original loan but also covers any additional money lent to the borrower or expenses incurred on the borrower's behalf after the agreement is made but before it's fully paid off.

This law section lets licensed lenders sell promissory notes, which are agreements to repay loans, to institutional investors. Licensed lenders can also make plans with these investors to collect payments and manage the loans.

Institutional investors include government entities, various financial institutions like banks and credit unions, large pension or welfare funds, certain corporations, and organized groups formed to buy promissory notes. It also includes special trusts or business entities that handle financial assets, provided they meet certain requirements like having investment-grade ratings or being sold to other institutional investors.

Payments from these notes, unless agreed otherwise, are kept in a separate trust account and managed according to the promissory note owner's instructions.

This legal section allows a finance lender with a license to sell promissory notes that represent the obligation to repay certain mortgage loans to either institutional lenders or specified institutional investors. These loans should be federally related, meaning they meet specific federal criteria. The finance lender can also handle agreements for collecting payments and managing services related to these promissory notes.

Unless there's an agreement stating otherwise, the money collected from these payments must be kept in a trust account and only spent according to the promissory note owner's instructions.

This law section prohibits lenders from refinancing certain retail installment contracts they hold unless specific conditions are met. The borrower must have made payments for at least 90 days, and the loan must cover at least the remaining balance of the original contract. If the borrower's home is used as collateral, strict notice requirements apply, including bold warnings in the borrower's language. Lenders can't sell additional services within the first 30 days of the loan, and installment amounts must be fairly distributed unless the loan is large (over $10,000), in which case certain balloon payment rules apply. Any actions related to such loans must be tried in specific counties related to the borrower's residence or loan signing location.

This law governs the use of "instant loan checks" or "live checks," which are loans offered via checks or similar negotiable instruments that can be used to make payments or deposits. Such checks must clearly state they represent a loan requiring repayment with fees. They are only valid for 30 days, and recipients should destroy unused checks.

These checks shouldn't visibly appear as checks in mailings, and mailings must have 'do not forward' instructions if undeliverable.

If a live check is fraudulently cashed by someone other than the intended recipient, the issuing creditor must ensure the recipient is not held liable, provided the recipient confirms they did not endorse the check. Violations of this law can result in fines up to $2,500 per incident, as enforced by the commissioner, who is empowered to conduct hearings if necessary.

Additional legal protections are outlined, including identity theft responses.

This law says that if someone breaks specific federal rules about lending to military members (detailed in certain sections of the U.S. Code and the Code of Federal Regulations), they are breaking this California financial regulation.

However, if a business doesn't market or loan money to military members as defined by one of those sections, they aren't breaking a related California Military and Veterans Code section.

If a licensed business breaks any rules under certain federal laws or regulations, they are also breaking this state law. The federal laws mentioned include the Real Estate Settlement Procedures Act, the Truth in Lending Act, the Home Ownership Equity Protection Act, and any rules made under these acts.

This law requires that a licensed mortgage loan originator's unique identifier be visibly displayed on all related documents. This includes mortgage applications, advertisements, business cards, websites, and any other documents specified by the commissioner.