AB 1980 Summary

• Requires finance lenders and deferred deposit transaction licensees to provide consumers with a "financial facts label" prior to loan consummation for unsecured loans of $2,500 or less, effective January 1, 2014 through January 1, 2018

• Financial facts label must display loan amount, number of payments, APR, monthly payment breakdown (principal, fees, interest), percent of monthly debt budget, and late payment amounts, designed similarly to FDA nutritional facts labels

• Mandates licensees display sample financial facts labels on all advertising (window, online, mailers, fliers, brochures, pamphlets) based on $1,000 loan amounts for finance lenders and $300 loan amounts for deferred deposit lenders

• Department of Corporations must adopt implementing regulations by January 1, 2014 establishing the label design and format

• Establishes that willful violations constitute crimes and provides no state reimbursement to local agencies, stating costs relate to crime definition changes under Government Code Section 17556