Loans: disclosures: financial facts label.

Existing law, the California Finance Lenders Law, provides for the licensure and regulation of finance lenders and brokers by the Department of Corporations. Existing law, the California Deferred Deposit Transaction Law, provides for the licensure and regulation of lenders who make deferred deposit transactions in an amount equal to or less than $300, as specified. A willful violation of these provisions is a crime. This bill would require those licensees to, on and after January 1, 2014, and until January 1, 2018, include a financial facts label with any deferred deposit transaction or an unsecured consumer loan in a principal amount that is equal to or less than $2,500, as specified. The bill would further require the financial facts label to be placed on specified advertising. Because a willful violation of these provisions would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.