California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 6 - California Financing Law
Article 14 - Pilot Program for Increased Access to Responsible Small Dollar Loans
Subarticle 5 - Credit Education Programs and Seminars
Section 1608 - Approval by the Commissioner

Universal Citation: 10 CA Code of Regs 1608

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) A licensee shall either offer a credit education program or seminar to the borrower, or invite the borrower to a credit education program or seminar offered by an independent third party.

(b) The content of the credit education program or seminar shall provide information to help borrowers understand, build and manage consumer credit, including but not limited to:

(1) Information on how installment loans work, loan payment and interest charges,

(2) Credit scores and the effect of credit scores on future financial decisions, costs of credit, and the effect of late or missed payments on credit scores,

(3) Understanding the credit reporting system, and

(4) Best practices for establishing and building good credit.

(c) Before offering any credit education program or seminar to a borrower, the licensee shall submit the following information in writing to the Commissioner for his or her review and approval of the program or seminar:

(1) The name, address, telephone number and email address of the credit education program or seminar,

(2) Name, title and contact information of the program's or seminar's contact person,

(3) Program's or seminar's accreditation, if any,

(4) Format of the program or seminar (classroom, one-on-one, online, etc.),

(5) Address locations where the program or seminar will be held in California,

(6) Name, certifications, and resume of instructors,

(7) Licensee's relationship (business or personal) with any person employed or affiliated with the program or seminar,

(8) Language(s) in which the program or seminar is offered and whether the program or seminar is made available to every borrower in the language in which the loan contract is negotiated,

(9) Copy of program content and program curriculum and all materials used or distributed to the borrower in the program or seminar, in all offered languages, and

(10) Any additional information or materials provided to the borrower after the credit education program or seminar is offered or has been provided.

(d) Within 30 calendar days from the receipt of the information in subsection (c) of this section, the Commissioner shall inform the licensee in writing whether the credit education program or seminar is approved or disapproved for use.

(e) A licensee shall not offer to a borrower any credit education program or seminar that has not been previously reviewed and approved by the Commissioner for use.

(f) A licensee shall maintain a file with the name and contact information for all credit education programs or seminars being offered to borrowers, and a copy of the program curriculum and all materials used or distributed in each program or seminar, in all offered languages, for purposes of compliance.

1. New subarticle 5 (sections 1608-1609) and section filed 7-17-2014; operative 7-17-2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 29).

Note: Authority cited: Section 22150, Financial Code. Reference: Section 22370, Financial Code.

Disclaimer: These regulations may not be the most recent version. California may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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