SB 825: Consumer loans.

Existing law, the California Financing Law, generally provides for the licensure and regulation of finance lenders and brokers. A willful violation of the law is a crime, except as specified. Existing law imposes various requirements on finance lenders making loans with a bona fide principal amount of at least $2,500 but less than $10,000.

Existing law requires a finance lender to, prior to disbursement, offer the borrower either a credit education program or seminar that has been previously reviewed and approved by the commissioner, or a credit education program or seminar provided by an independent third party that has been previously reviewed and approved by the commissioner.

This bill would recast those provisions to specify that in either case, whether provided directly or by a third party, the program or seminar is required to be previously reviewed and approved by the commissioner.