California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 6 - California Financing Law
Article 10 - Advertising
Section 1556 - Credit Instruments: Limitations
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) "Guaranteed loan offer" as used in this section means an offer by a finance company that purports to be a firm offer or guarantee or commitment that the finance company will make a loan to the individual or individuals named in the offer.
(b) A finance company shall not be permitted to make a guaranteed loan offer unless the following conditions are met:
(c) The guaranteed loan offer may contain any of the following provisions:
(d) Within twenty-five (25) calendar days from the receipt of the Package under subsection (b)(1) of this rule, the Commissioner shall inform the finance company, in writing, that the Package is not disapproved, or that the Package is disapproved and specify information needed to complete the Package. Within twenty-five (25) calendar days from the receipt of a complete Package, the Commissioner shall reach a decision on the Package. The Commissioner's median, minimum, and maximum times for processing a Package are nineteen (19) calendar days, six (6) calendar days, and thirty-six (36) calendar days, respectively, from the acceptance of the initial package to the final decision on the Package, based on the Commissioner's actual performance during the two years immediately preceding the proposal of this subsection.
(e) The finance company shall comply with the terms stated in the offer when the offer is accepted by the prospective borrower or borrowers.
(f) The Commissioner may, by order, exempt any finance company from the requirements of submitting any Package for examination under subsection (b)(1) of this rule if the Commissioner finds the finance company has been in substantial compliance with the Law or any regulation or order regarding advertising for a period of not less than 12 months immediately prior to the effective date of the order. Any order issued pursuant to this subsection shall continue in effect until it expires by its terms or until the order is revoked by the Commissioner.
(g) For an instant loan check or a live check, the finance company shall comply with Financial Code Section 22342.
1. Amendment
filed 12-29-83; effective thirtieth day thereafter (Register 83, No.
53).
2. Amendment of NOTE filed 2-21-85; effective thirtieth day
thereafter (Register 85, No. 8).
3. Amendment of section filed
6-28-91; operative 7-29-91 (Register 91, No. 41).
4. Change without
regulatory effect amending subsection (b)(4) and NOTE filed 6-14-95 pursuant to
section 100, title 1, California Code of
Regulations (Register 95, No. 24).
5. Amendment of subsection
(b)(1), new subsection (b)(9), amendment of subsection (d), new subsection (f)
and amendment of NOTE filed 7-27-99; operative 8-26-99 (Register 99, No.
31).
6. Change without regulatory effect amending subsection (b)(1),
adding subsection (g) and amending NOTE filed 3-25-2005 pursuant to section
100, title 1, California Code of
Regulations (Register 2005, No. 12).
Note: Authority cited: Section 22150, Financial Code. Reference: Sections 22150, 22161, 22162, 22163, 22164, 22165 and 22342, Financial Code.