| 1 | 1 | | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 909Introduced by Senator Ochoa BoghFebruary 02, 2022 An act to amend Section 22202 of the Financial Code, relating to consumer loans.LEGISLATIVE COUNSEL'S DIGESTSB 909, as introduced, Ochoa Bogh. California Financing Law: consumer loans: charges.The California Financing Law (CFL) provides for the licensure and regulation of finance lenders and brokers by the Commissioner of Financial Protection and Innovation and regulates the provision of consumer loans, as prescribed. The CFL defines the term charges to include and exclude certain things for purposes of regulating consumer loans.This bill would make a nonsubstantive change to these provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 22202 of the Financial Code is amended to read:22202. Charges do not include any of the following:(a) Commissions Commission received as a licensed insurance agent or broker in connection with insurance written as provided in Section 22313.(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) Court costs, excluding attorneys fees, incurred in a suit and recovered against a debtor who defaults on the debtors loan.(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 licensees open-end credit program. Amounts received by a licensee from a seller pursuant to this subdivision may shall not exceed 6 percent of the loan proceeds paid to the seller at the direction of the borrower.(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 if the licensee complies with Sections 22328 and 22329, 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) 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. |
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| 3 | 3 | | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 909Introduced by Senator Ochoa BoghFebruary 02, 2022 An act to amend Section 22202 of the Financial Code, relating to consumer loans.LEGISLATIVE COUNSEL'S DIGESTSB 909, as introduced, Ochoa Bogh. California Financing Law: consumer loans: charges.The California Financing Law (CFL) provides for the licensure and regulation of finance lenders and brokers by the Commissioner of Financial Protection and Innovation and regulates the provision of consumer loans, as prescribed. The CFL defines the term charges to include and exclude certain things for purposes of regulating consumer loans.This bill would make a nonsubstantive change to these provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO |
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| 9 | 9 | | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION |
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| 11 | 11 | | Senate Bill |
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| 13 | 13 | | No. 909 |
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| 15 | 15 | | Introduced by Senator Ochoa BoghFebruary 02, 2022 |
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| 17 | 17 | | Introduced by Senator Ochoa Bogh |
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| 18 | 18 | | February 02, 2022 |
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| 20 | 20 | | An act to amend Section 22202 of the Financial Code, relating to consumer loans. |
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| 21 | 21 | | |
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| 22 | 22 | | LEGISLATIVE COUNSEL'S DIGEST |
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| 24 | 24 | | ## LEGISLATIVE COUNSEL'S DIGEST |
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| 25 | 25 | | |
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| 26 | 26 | | SB 909, as introduced, Ochoa Bogh. California Financing Law: consumer loans: charges. |
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| 27 | 27 | | |
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| 28 | 28 | | The California Financing Law (CFL) provides for the licensure and regulation of finance lenders and brokers by the Commissioner of Financial Protection and Innovation and regulates the provision of consumer loans, as prescribed. The CFL defines the term charges to include and exclude certain things for purposes of regulating consumer loans.This bill would make a nonsubstantive change to these provisions. |
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| 29 | 29 | | |
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| 30 | 30 | | The California Financing Law (CFL) provides for the licensure and regulation of finance lenders and brokers by the Commissioner of Financial Protection and Innovation and regulates the provision of consumer loans, as prescribed. The CFL defines the term charges to include and exclude certain things for purposes of regulating consumer loans. |
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| 31 | 31 | | |
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| 32 | 32 | | This bill would make a nonsubstantive change to these provisions. |
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| 33 | 33 | | |
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| 34 | 34 | | ## Digest Key |
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| 36 | 36 | | ## Bill Text |
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| 38 | 38 | | The people of the State of California do enact as follows:SECTION 1. Section 22202 of the Financial Code is amended to read:22202. Charges do not include any of the following:(a) Commissions Commission received as a licensed insurance agent or broker in connection with insurance written as provided in Section 22313.(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) Court costs, excluding attorneys fees, incurred in a suit and recovered against a debtor who defaults on the debtors loan.(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 licensees open-end credit program. Amounts received by a licensee from a seller pursuant to this subdivision may shall not exceed 6 percent of the loan proceeds paid to the seller at the direction of the borrower.(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 if the licensee complies with Sections 22328 and 22329, 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) 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. |
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| 40 | 40 | | The people of the State of California do enact as follows: |
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| 42 | 42 | | ## The people of the State of California do enact as follows: |
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| 44 | 44 | | SECTION 1. Section 22202 of the Financial Code is amended to read:22202. Charges do not include any of the following:(a) Commissions Commission received as a licensed insurance agent or broker in connection with insurance written as provided in Section 22313.(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) Court costs, excluding attorneys fees, incurred in a suit and recovered against a debtor who defaults on the debtors loan.(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 licensees open-end credit program. Amounts received by a licensee from a seller pursuant to this subdivision may shall not exceed 6 percent of the loan proceeds paid to the seller at the direction of the borrower.(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 if the licensee complies with Sections 22328 and 22329, 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) 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. |
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| 46 | 46 | | SECTION 1. Section 22202 of the Financial Code is amended to read: |
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| 48 | 48 | | ### SECTION 1. |
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| 50 | 50 | | 22202. Charges do not include any of the following:(a) Commissions Commission received as a licensed insurance agent or broker in connection with insurance written as provided in Section 22313.(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) Court costs, excluding attorneys fees, incurred in a suit and recovered against a debtor who defaults on the debtors loan.(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 licensees open-end credit program. Amounts received by a licensee from a seller pursuant to this subdivision may shall not exceed 6 percent of the loan proceeds paid to the seller at the direction of the borrower.(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 if the licensee complies with Sections 22328 and 22329, 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) 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. |
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| 52 | 52 | | 22202. Charges do not include any of the following:(a) Commissions Commission received as a licensed insurance agent or broker in connection with insurance written as provided in Section 22313.(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) Court costs, excluding attorneys fees, incurred in a suit and recovered against a debtor who defaults on the debtors loan.(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 licensees open-end credit program. Amounts received by a licensee from a seller pursuant to this subdivision may shall not exceed 6 percent of the loan proceeds paid to the seller at the direction of the borrower.(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 if the licensee complies with Sections 22328 and 22329, 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) 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. |
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| 54 | 54 | | 22202. Charges do not include any of the following:(a) Commissions Commission received as a licensed insurance agent or broker in connection with insurance written as provided in Section 22313.(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) Court costs, excluding attorneys fees, incurred in a suit and recovered against a debtor who defaults on the debtors loan.(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 licensees open-end credit program. Amounts received by a licensee from a seller pursuant to this subdivision may shall not exceed 6 percent of the loan proceeds paid to the seller at the direction of the borrower.(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 if the licensee complies with Sections 22328 and 22329, 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) 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. |
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| 58 | 58 | | 22202. Charges do not include any of the following: |
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| 60 | 60 | | (a) Commissions Commission received as a licensed insurance agent or broker in connection with insurance written as provided in Section 22313. |
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| 62 | 62 | | (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. |
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| 64 | 64 | | (c) Court costs, excluding attorneys fees, incurred in a suit and recovered against a debtor who defaults on the debtors loan. |
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| 66 | 66 | | (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 licensees open-end credit program. Amounts received by a licensee from a seller pursuant to this subdivision may shall not exceed 6 percent of the loan proceeds paid to the seller at the direction of the borrower. |
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| 68 | 68 | | (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 if the licensee complies with Sections 22328 and 22329, 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. |
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| 70 | 70 | | (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. |
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