Consumer loans: residential real property rental payments.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Banking and Financial Institutions
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill prohibits finance lenders, brokers, and program administrators from offering loans specifically to cover residential rental payments. It establishes requirements for such loans, including limiting installment payments to two, capping late fees, and mandating clear disclosures to consumers. The bill also addresses potential issues related to automatic withdrawals and advertising practices, aiming to protect renters from potentially exploitative loan terms.
Key provisions
- Finance lenders cannot make loans solely for rental payments.
- Loans limited to a maximum of two installment payments.
- Late fees capped at 50% of subscription fees or 0.5% of rent.
- Disclosure requirements for fees and terms.
- Prohibition on advertising 0% APR unless specific conditions are met.
- Servicers must provide clear disclosures to consumers.
- Automatic withdrawal limitations to prevent insufficient funds issues.
- Servicers cannot require minimum subscription terms.
Who is affected
- Finance lenders
- Consumers seeking rental assistance loans
- Rental property owners
- Renters
- Financial service providers
Notable changes
- Creates a new crime under the California Financing Law related to rental payment loans.
- Establishes fee limitations for late payments.
Bill text
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Sponsors
Official sponsors from legislative records.
1 on record
Primary sponsor
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