California 2019-2020 Regular Session Status: In Committee

SB 482 — Consumer loans: restrictions.

Last action — Returned to Secretary of Senate pursuant to Joint Rule 56.

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2019-2020 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

(1) Existing law, the California Financing Law (CFL) , generally provides for the licensure and regulation of finance lenders by the Commissioner of Business Oversight. A knowing and willful violation of the CFL, or a rule or order adopted pursuant to the CFL, is a crime, except as specified. Among other things, the CFL regulates the provision of loan documents to borrowers, the collection of unpaid consumer loans, the repossession of motor vehicles that secure consumer loans, and the collateral sale of products in connection with a consumer loan. The CFL requires a consumer loan to be payable in advance and permits the licensee to apply an advance payment first to any prepayment penalty. This bill, with regard to a loan secured by a lien on a motor vehicle, would prohibit the licensee from repossessing the vehicle if the borrower has made a full installment payment within the past 30 calendar days. The bill would prohibit any prepayment penalty on a consumer loan, other than one secured by real property, and would require a specified notice with regard to repaying a loan early to be included on a loan contract for which a prepayment penalty is prohibited. The bill would prohibit a licensee from making a consumer loan unless the licensee determines that the borrower has a reasonable ability to repay the loan by considering various factors. The bill would require a finance lender to seek information and documentation pertaining to all of a borrower's outstanding debt obligations during the loan application and underwriting process, as specified. The bill would require a finance lender to confirm that information using a credit report and also to confirm the borrower's income, as specified. The bill would grant a borrower under a consumer loan a 3 calendar day right to cancel at no cost to the borrower and would require consumer loan agreements to include a statement regarding this right. The bill would also require loan agreements on specified loans that have interest rates exceeding a certain threshold to include a statement that, among other things, identifies the loan as a high-cost loan. The bill would require a finance lender to offer a credit education program or seminar to the borrower that has been previously reviewed and approved by the commissioner or to invite a borrower to participate in a previously reviewed credit education program or seminar offered by a third party. The bill would prohibit a borrower from being required to participate in those programs and would prohibit the borrower from being charged to participate in those programs. This bill would require a finance lender to notify a borrower on a consumer loan, except those secured by real property, at least 2 days before each payment due date, and inform the borrower of the amount due and the payment due date. The means of notification would be subject to agreement between the borrower and the finance lender, and the bill would permit the borrower to opt out of notification at any time. The bill would authorize a finance lender to modify terms of a loan upon request of a borrower, as specified, would require that a modification be in writing, and would prohibit a finance lender from charging a borrower a fee for a modification. The bill would prohibit a finance lender or its corporate affiliates from selling or assigning a borrower's delinquent debt to an independent third party for collection until the finance lender or affiliate has attempted to obtain payment directly from the borrower for a period of at least 30 days following a missed payment or delinquency. By broadening the definition of a crime, this bill would impose a state-mandated local program. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill Text

Action History

  1. Returned to Secretary of Senate pursuant to Joint Rule 56.

  2. April 23 set for first hearing canceled at the request of author.

  3. From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.

  4. Set for hearing April 23.

  5. From committee: Do pass and re-refer to Com. on JUD. (Ayes 4. Noes 1. Page 712.) (April 10). Re-referred to Com. on JUD.

  6. From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.I.

  7. Set for hearing April 10.

  8. Referred to Coms. on B. & F.I. and JUD.

  9. From printer. May be acted upon on or after March 24.

  10. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

  • Hueso · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

  • Hueso

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Votes

Subjects

finance housing
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Frequently asked questions

What does SB 482 do?
(1) Existing law, the California Financing Law (CFL) , generally provides for the licensure and regulation of finance lenders by the Commissioner of Business Oversight. A knowing and willful violation of the CFL, or a rule or order adopted pursuant to the CFL, is a crime, except as specified. Among other things, the CFL regulates the provision of loan documents to borrowers, the collection of unpaid consumer loans, the repossession of motor vehicles that secure consumer loans, and the collateral sale of products in connection with a consumer loan. The CFL requires a consumer loan to be payable in advance and permits the licensee to apply an advance payment first to any prepayment penalty. This bill, with regard to a loan secured by a lien on a motor vehicle, would prohibit the licensee from repossessing the vehicle if the borrower has made a full installment payment within the past 30 calendar days. The bill would prohibit any prepayment penalty on a consumer loan, other than one secured by real property, and would require a specified notice with regard to repaying a loan early to be included on a loan contract for which a prepayment penalty is prohibited. The bill would prohibit a licensee from making a consumer loan unless the licensee determines that the borrower has a reasonable ability to repay the loan by considering various factors. The bill would require a finance lender to seek information and documentation pertaining to all of a borrower's outstanding debt obligations during the loan application and underwriting process, as specified. The bill would require a finance lender to confirm that information using a credit report and also to confirm the borrower's income, as specified. The bill would grant a borrower under a consumer loan a 3 calendar day right to cancel at no cost to the borrower and would require consumer loan agreements to include a statement regarding this right. The bill would also require loan agreements on specified loans that have interest rates exceeding a certain threshold to include a statement that, among other things, identifies the loan as a high-cost loan. The bill would require a finance lender to offer a credit education program or seminar to the borrower that has been previously reviewed and approved by the commissioner or to invite a borrower to participate in a previously reviewed credit education program or seminar offered by a third party. The bill would prohibit a borrower from being required to participate in those programs and would prohibit the borrower from being charged to participate in those programs. This bill would require a finance lender to notify a borrower on a consumer loan, except those secured by real property, at least 2 days before each payment due date, and inform the borrower of the amount due and the payment due date. The means of notification would be subject to agreement between the borrower and the finance lender, and the bill would permit the borrower to opt out of notification at any time. The bill would authorize a finance lender to modify terms of a loan upon request of a borrower, as specified, would require that a modification be in writing, and would prohibit a finance lender from charging a borrower a fee for a modification. The bill would prohibit a finance lender or its corporate affiliates from selling or assigning a borrower's delinquent debt to an independent third party for collection until the finance lender or affiliate has attempted to obtain payment directly from the borrower for a period of at least 30 days following a missed payment or delinquency. By broadening the definition of a crime, this bill would impose a state-mandated local program. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
Who sponsors SB 482?
SB 482 is sponsored by Hueso.
What is the current status of SB 482?
This bill died with 2019-2020 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 482?
Track SB 482 free on One Click Politics — get push/email alerts when it moves.

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