California Financing Law Rate Cap Advances to Governor Newsom’s Desk

By Michael R. Guerrero on September 16, 2019

On the last day of California’s 2019 legislative session, by a vote of 61 to 8, the California State Assembly overwhelmingly passed Assembly Bill 539, the Fair Access to Credit Act. Governor Newsom has until October 13th to sign or veto the bill. As we’ve previously covered, AB 539 makes significant amendments to the California Financing Law. Most importantly, the bill limits the rate of interest that may be imposed on loans of…

Consumer Finance Monitor

CA regulator proposes regulations to implement new law requiring consumer-like disclosures for commercial financing

By Michael R. Guerrero on August 19, 2019

The California Department of Business Oversight (DBO) has issued proposed regulations to implement SB 1235, the bill signed into law in September 2018 that requires consumer-like disclosures to be made for certain commercial financing products, including small business loans, merchant cash advances, and factoring. The law contains exemptions and carve-outs for, among other things, depository institutions, financings of more than $500,000, closed-end loans with a principal amount of less than $5,000, and transactions secured…

Consumer Finance Monitor

Movement on two California bills implicating the California Financing Law

By Michael R. Guerrero on July 15, 2019

There was movement last week on two California bills that we have been tracking closely and which could substantially alter the lending and brokering landscape under the California Financing Law (“CFL”). On July 9th, AB-539, which proposes to cap interest rates at 36% plus the federal funds rate on CFL loans of $2,500 to $10,000, passed the Senate Committee on Judiciary and was sent to the Appropriations Committee where we believe the bill will…

Consumer Finance Monitor

California Senate to hold June 26 hearing on bill capping consumer loan interest rates

By Michael R. Guerrero on June 19, 2019

The California Senate’s Banking and Financial Institutions Committee will hold a hearing on AB 539 on June 26, 2019. The hearing was previously scheduled for today. AB 539 was cleared by the California Assembly on May 23. The bill would change several aspects of the California Financing Law (CFL), including by setting new interest rate caps, imposing new rules governing loan duration, and prohibiting prepayment penalties. For example, while the CFL does not set…

Consumer Finance Monitor

California bill capping consumer loan interest rates clears Assembly

By Michael R. Guerrero on May 29, 2019

Last week, by a vote of 60 to 4 (with 16 not voting), the California Assembly cleared AB 539, which would change several aspects of the California Financing Law (CFL), including by setting new interest rate caps, imposing new rules governing loan duration, and prohibiting prepayment penalties. For example, while the CFL does not set a maximum interest rate on loans of $2,500 or more, AB 539 would cap the interest rate at 36%…

Consumer Finance Monitor

Five federal regulators issue statement clarifying role of supervisory guidance; Ballard Spahr to discuss interagency statement in Oct. 10 webinar on CFPB’s Summer 2018 Supervisory Highlights

By Michael R. Guerrero on September 13, 2018

In what seems to be a response to the Government Accountability Office’s (“GAO”) determination that the Consumer Financial Protection Bureau’s indirect auto finance bulletin (the “Bulletin”) was a rule subject to the Congressional Review Act (“CRA”) and a rebuke to the Bureau’s prior approach of “rulemaking by enforcement,” the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency and the Bureau…

Consumer Finance Monitor

CFPB continues work on student loan payback playbook disclosures

By John L. Culhane, Jr. & Michael R. Guerrero on February 1, 2017

The CFPB recently revised the prototype student loan Payback Playbook disclosures it has been developing with the Departments of Education and Treasury. These revisions were based on feedback from nearly 3,500 individual student loan borrowers, student loan market participants, higher education policy experts and other stakeholders in response to the April 2016 Notice and Request for Information Regarding Student Loan Borrower Communications. The CFPB also sent a letter to the Department of Education summarizing…

Michael R. Guerrero

California Financing Law Rate Cap Advances to Governor Newsom’s Desk

CA regulator proposes regulations to implement new law requiring consumer-like disclosures for commercial financing

Movement on two California bills implicating the California Financing Law

California Senate to hold June 26 hearing on bill capping consumer loan interest rates

California bill capping consumer loan interest rates clears Assembly

Five federal regulators issue statement clarifying role of supervisory guidance; Ballard Spahr to discuss interagency statement in Oct. 10 webinar on CFPB’s Summer 2018 Supervisory Highlights

CFPB continues work on student loan payback playbook disclosures

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