No person shall advertise, print, display, publish, distribute, or broadcast, or cause or permit to be advertised, printed, displayed, published, distributed, or broadcast, in any manner in connection with the business of an industrial loan company any statement or representation with regard to the rates, terms, or conditions for making or negotiating loans, or with regard to investment certificates, which is false, misleading, or deceptive.
General ProvisionsAdvertising
Section § 18055
This law prohibits anyone involved with industrial loan companies from making or promoting false, misleading, or deceptive claims about loan rates, terms, conditions, or investment certificates. This applies to any form of communication, like advertisements or broadcasts.
industrial loan company false advertising misleading statements
Section § 18056
An industrial loan company in California is not allowed to mention state supervision or oversight in its advertisements. This means they can't imply that being overseen by the state adds any credibility or endorsement to their services in their advertising materials.
An industrial loan company shall not use any advertising which refers to the supervision of such company by the state or any department or official thereof.
industrial loan company advertising restrictions state supervision
Section § 18057
This law says that an industrial loan company in California is not allowed to advertise or make any statements that suggest it is a savings association. This means they cannot use language or images that might cause people to think they operate like savings banks.
An industrial loan company shall not use any advertising nor make any representations which indicate, imply or might lead a person to believe that the company is a savings association.
industrial loan company advertising restrictions misleading representations
Section § 18058
This law states that an industrial loan company can't advertise or suggest that their investment certificates are insured unless this is actually true. Essentially, they must be honest about the insurance status of their investment products.
An industrial loan company shall not use any advertising nor make any representations which indicate, infer or might lead a person to believe that investment certificates are insured unless such is the fact.
industrial loan company advertising restrictions investment certificates
Section § 18060
This law states that if an industrial loan company sells thrift certificates and advertises its connection to another company, it must clearly reveal whether or not that other company guarantees the loan certificates. This must be done using visible, large print, similar to how the connection is mentioned. If the other company does guarantee the thrift certificates, this rule applies even if the loan company is insured. However, if the other company does not guarantee the certificates and the ad does not say or suggest that the other company's resources are used as a guarantee, then the rule does not apply.
(a)CA Financial Code § 18060(a) Except as provided in subdivision (b), industrial loan company which issues thrift certificates shall not use any thrift advertisement which refers to the industrial loan company’s ownership by, or affiliation with, any other entity unless the advertisement also discloses in as prominent a manner and as large a type size as the referenced ownership or affiliation was stated, whether or not the owner or affiliate so named guarantees thrift certificates issued by the industrial loan company.
(b)Copy CA Financial Code § 18060(b)
(1)Copy CA Financial Code § 18060(b)(1) Subdivision (a)
applies to an insured company when the other entity guarantees the thrift certificates issued by the insured company.
(2)CA Financial Code § 18060(b)(2) Subdivision (a) does not apply to an insured company when the other entity does not guarantee the thrift certificates issued by the insured company and the advertisement referring to the insured company’s ownership by, or affiliation with, the other entity does not state or imply that the assets or reserves of the other entity may be used to guarantee thrift certificates of the insured company.
industrial loan company thrift certificates thrift advertisement
Section § 18061
This law requires industrial loan companies to clearly and fully explain any advertised loan rates, charges, discounts, or costs. They must do so in a way that prevents confusion for potential borrowers and provides enough information. If the advertised rates or costs don't apply to all types of loans, the advertisement must clearly state this.
If an industrial loan company refers in any advertisement to rates of charge, discount, charges or costs of loans, those charges shall be stated fully and clearly in a manner as may be necessary to prevent misunderstanding thereof by prospective borrowers and to give adequate information to prospective borrowers. If the rates or costs advertised do not apply to loans of all classes, this fact shall be clearly indicated in the advertisement.
industrial loan company advertising loan charges disclosure prevent misunderstanding
Section § 18062
An industrial loan company cannot use any advertising that has been disapproved by the commissioner. If a company's advertisement is judged misleading, they will be notified in writing. From July 1, 1990, the commissioner can also require companies to get approval for ads related to investment or thrift certificates before they're published to prevent false or deceptive information.
An industrial loan company shall not use any advertisement after its use has been disapproved by the commissioner and the industrial loan company has been notified in writing of the disapproval. Commencing July 1, 1990, the commissioner may require a company to obtain written or oral approval of any advertisement for investment or thrift certificates prior to publication thereof in order to avoid false, misleading, or deceptive advertising.
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Section § 18063
This law states that an industrial loan company might have to keep copies of all their advertisements for a year after they’re used. The commissioner can ask to see these files anytime.
The commissioner may require an industrial loan company to maintain a file of all advertising copy for a period of 12 months from the date of its use. The file shall be available to the commissioner upon request.
industrial loan company advertising copy retain advertising
