Bill Text: CA AB1103 | 2023-2024 | Regular Session | Amended
Bill Title: Deferred interest financing: notice.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2024-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1103 Detail]
Download: California-2023-AB1103-Amended.html
|
Amended
IN
Assembly
March 09, 2023 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 1103
| Introduced by Assembly Member Weber |
February 15, 2023 |
LEGISLATIVE COUNSEL'S DIGEST
AB 1103, as amended, Weber.
Deferred interest financing. financing: notice.
The California Consumer Financial Protection Law requires the Department of Financial Protection and Innovation to regulate the offering and provision of consumer financial products or services under California consumer financial laws, as defined, and to exercise nonexclusive oversight and enforcement authority under California consumer financial laws. The California Financing Law prohibits a person from engaging in the business of making consumer or commercial loans without a license from the Commissioner of Financial Protection and Innovation and generally regulates the provision of consumer and commercial loans.
This bill would require a person who offers a deferred interest period to consumers to provide effective notice to a consumer when a deferred
interest period, as defined, is coming to an end. The bill would define “effective notice” to mean notice that is, among other things, reasonably calculated, and intended in good faith, to inform a consumer that a deferred interest period is ending.
Existing law provides for the regulation of various types of financial institutions and transactions.
This bill would state the intent of the Legislature to enact legislation related to deferred interest financing plans on the purchase of goods.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Division 16 (commencing with Section 33000) is added to the Financial Code, to read:DIVISION 16. Deferred Interest
33000.
As used in this division:(a) “Covered entity” means a person who offers a deferred interest period to consumers.
(b) “Deferred interest period” means a period of time during which a borrower is not required to pay interest on a loan balance at the end of which, if any portion of the loan balance remains unpaid, the borrower is required to pay interest that is backdated and charged on the entire original balance, regardless of how much of the balance remains unpaid.
(c) “Effective notice” means notice that meets all of the following criteria:
(1) The notice is reasonably
calculated, and intended in good faith, to inform a consumer that a deferred interest period is ending.
(2) The notice is legible and easy to read.
(3) The notice is delivered to the consumer, at the consumer’s preferred method of contact whether electronically or by mail, within either of the following time periods, as applicable:
(A) If the deferred interest period is one year or less, at least 30 but not more than 45 days before the end of the deferred interest period.
(B) If the deferred interest period is more than one year, at least 45 but not more than 60 days before the end of the deferred interest period.
33001.
(a) A covered entity shall provide effective notice to a consumer when a deferred interest period is coming to an end.(b) This section does not apply to a person with respect to whom the application of this section is preempted by federal law.
It is the intent of the Legislature to enact legislation related to deferred interest financing plans on the purchase of goods.
