California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 10 - Check Sellers, Bill Payers and Proraters
Article 3 - Books, Records and Examinations
Section 1789.14 - General Prorater Fees
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) A prorater is not a creditor of a debtor for purposes of calculating fees pursuant to Section 12314 of the Financial Code. A prorater may not assess, charge, or collect a fee on any sums or debts due the prorater.
(b) The origination fee permitted by Section 12314 (a) of the Financial Code shall be disclosed in writing to the debtor at the time of execution of the prorate agreement or contract and shall specify the amount of the origination fee and the terms and conditions for payment of the fee.
(c) Only one origination fee may be charged to a debtor (husband and wife shall be considered one debtor) regardless of the number of times a contract or agreement is rewritten or revised.
(d) An origination fee shall not be charged a debtor who has had an account cancelled or defaulted within 30 days prior to the opening of the new account; provided, further, that a debtor shall not be charged more than two origination fees.
(e) An origination fee shall not be charged a debtor who has had an account cancelled or defaulted within the past three months and has been assessed a cancellation fee.
1. New
section filed 1-22-74; effective thirtieth day thereafter (Register 74, No.
4).
2. Editorial correction adding NOTE filed 4-6-83 (Register 83,
No. 15).
3. Editorial correction of subsection (b) (Register 95, No.
48).
Note: Authority cited: Section 12300, Financial Code. Reference: Sections 12314, 12315 and 12315.1, Financial Code.
