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CA AB2233
Bill
Status
Introduced
2/24/2012
Primary Sponsor
Toni Atkins
Click for details
AI Summary
- Authorizes licensed finance lenders and brokers to make small installment consumer loans between $750 and $2,500 with terms of 180 days to 18 months
- Permits lenders to charge up to 3 percent monthly interest on unpaid principal, an administrative fee of 7.5 percent of principal or $150 (whichever is less), and a monthly account service fee up to $85
- Allows alternative precomputed interest calculation without using Rule of 78's, with prorated rebates on prepaid loans
- Grants borrowers the right to rescind loans by returning the principal amount by the end of the lender's business day following consummation, with lenders required to disclose this right in loan agreements
- Classifies violations as crimes, creating a state-mandated local program with no state reimbursement required under California Constitution Article XIII B
Legislative Description
Small Installment Consumer Loan Act.
Last Action
In committee: Set, second hearing. Hearing canceled at the request of author.
4/24/2012
Committee Referrals
Banking and Finance3/29/2012
Full Bill Text
No bill text available