California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 14 - Pilot Program for Increased Access to Responsible Small Dollar Loans › Subarticle 2 - Application and Registration › Section 1602 - Application for the Pilot Program for Increased Access to Responsible Small Dollar Loans: Form

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 Except as provided in subsection (b), finance lenders licensed under the
					 California Financing Law may apply to participate in the Pilot Program for
					 Increased Access to Responsible Small Dollar Loans. The application for the
					 Increased Access to Responsible Small Dollar Loans program pursuant to Section
					 22366 of
					 the Financial Code shall be filed upon the form set forth in subsection
					 (e).
(b) Licensees approved to
					 participate in the former Pilot Program for Affordable Credit-Building
					 Opportunities are transferred to and approved to participate in the Increased
					 Access to Responsible Small Dollar Loans program, without filing the
					 application in subsection (e).
(c)
					 Within 30 calendar days from the receipt of the application, the Commissioner
					 shall inform the licensee in writing, that the application is complete and the
					 licensee is approved to participate in the program or disapproved, and if
					 disapproved, the reason(s) for disapproval; or that the application is
					 deficient and specify what information is required to complete the application.
					 This subsection shall not apply to an applicant not licensed under the
					 California Financing Law.
(d) Any
					 person not licensed under the California Financing Law may apply concurrently
					 for a license and to participate in the Increased Access to Responsible Small
					 Dollar Loans program by completing a combined application form, which consists
					 of the Application for a License Under the California Financing Law under
					 Section 1422 of these rules and the
					 Application for the Pilot Program for Increased Access to Responsible Small
					 Dollar Loans Under the California Financing Law in subsection (e). The
					 Commissioner shall concurrently review the combined application and within 45
					 calendar days, inform the applicant in writing that the application is complete
					 and accepted for filing, or that the application is deficient and specify what
					 information is required to complete the application. Within 60 calendar days
					 from the filing of a complete combined application, the Commissioner shall
					 reach a decision on the license and participation in the pilot
					 program.
(e) An application to make
					 loans under the Increased Access to Responsible Small Dollar Loans program
					 shall be submitted to the Commissioner on the following form:
STATE OF CALIFORNIA
DEPARTMENT OF FINANCIAL PROTECTION AND
						INNOVATION
INFORMATION ON THE APPLICATION FOR THE PILOT
						PROGRAM FOR INCREASED ACCESS TO RESPONSIBLE SMALL DOLLAR LOANS UNDER THE
						CALIFORNIA FINANCING LAW
The following is provided as general information for
						finance lenders licensed, or seeking licensure under the California Financing
						Law (CFL), that wish to participate in the Pilot Program for Increased Access
						to Responsible Small Dollar Loans in accordance with Financial Code Section
						22366.
GENERAL INFORMATION
Senate Bill 318 (Chap. 467, Stats. 2013) was signed into
						law on October 1, 2013, and became operative January 1, 2014. The bill created
						the Pilot Program for Increased Access to Responsible Small Dollar Loans to
						increase the availability of responsible small dollar installment loans of at
						least $300 but less than $2,500. Assembly Bill 2196 (Chap. 174, Stats. 2020)
						extended the Pilot Program to January 1, 2028, and Assembly Bill 237 (Chap.
						1016, Stats 2018) increased the upper limit on the amount of a permissible loan
						under the Pilot Program from $2,500 to $7,500.
Finance lenders who are licensed under the CFL and
						approved by the Commissioner of Financial Protection and Innovation
						(Commissioner) to participate in the program may charge specified alternative
						interest rates and charges, including an administrative fee and delinquency
						fees, on loans of at least $300 but less than $7,500, subject to certain
						requirements. Licensees participating in the program are also permitted to use
						the services of a "finder" as defined in Section
						22371 of
						the Financial Code.
LICENSEES UNDER THE FORMER PILOT PROGRAM FOR
						AFFORDABLE CREDIT-BUILDING OPPORTUNITIES
Effective January 1, 2014, Senate Bill 318 abolished the
						former Pilot Program for Affordable Credit-Building Opportunities (Senate Bill
						1146 - Chap. 640, Stats. 2010). Licensees approved to participate under the
						former pilot program are transferred to and approved to participate in the
						Pilot Program for Increased Access to Responsible Small Dollar Loans without
						filing the application.
APPLICATION TO PARTICIPATE IN THE
						PROGRAM
* An application form to participate in the program may
						be obtained from the following offices of the Department of Financial
						Protection and Innovation and from the Web site at
www.dfpi.ca.gov
. The office locations are:
320 W. 4th Street, Suite 750
Los Angeles, CA 90013
One Sansome Street, Suite 600
San Francisco, CA 94104
2101 Arena Blvd
Sacramento, CA 95834
1350 Front Street, Room 2034
San Diego, CA 92101
* Questions regarding completing and filing an
						application should be directed to 213-576-7690.
* Completed applications must be filed with the Los
						Angeles Office. The application must be accompanied by NON-REFUNDABLE fees as
						follows.
NUMBER OF LICENSED FINANCE LENDER
								LOCATIONS
APPLICATION FEE
1 to 10
$250
11 to 50
$450
51 to 100
$650
Over 100
$850
* Within 30 calendar days from the receipt of the
						application, the Commissioner shall inform the licensee in writing, that the
						application is complete and the licensee is approved to participate in the
						program or disapproved, and if disapproved, the reason(s) for disapproval; or
						that the application is deficient and specify what information is required to
						complete the application.
* Any person seeking to participate in the Pilot Program
						for Increased Access to Responsible Small Dollar Loans and not already licensed
						under the California Financing Law must complete a combined application, which
						consists of the Application for a License Under the California Financing Law
						under Section
						1422 of these rules and the
						Application for the Pilot Program for Increased Access to Responsible Small
						Dollar Loans Under the California Financing Law. To be eligible to apply in
						this manner, there must be no outstanding enforcement or other disciplinary
						actions taken against the person by any of California's financial regulators or
						by a financial regulator of another state. The fees required for both
						applications shall be paid to the Department of Financial Protection and
						Innovation at the time the combined application is filed with the Commissioner.
						The Commissioner shall concurrently review the combined application and within
						45 calendar days from receipt of the combined application, inform the applicant
						in writing that the application is complete and accepted for filing, or that
						the application is deficient and specify what information is required to
						complete the application. Within 60 calendar days from the filing of a complete
						application, the Commissioner shall reach a decision on the license and
						participation in the pilot program.
APPLICATION FOR THE PILOT PROGRAM FOR INCREASED
						ACCESS TO RESPONSIBLE SMALL DOLLAR LOANS UNDER THE CALIFORNIA FINANCING
						LAW
1. Name of Licensee (or
					 Applicant):
___________________________
Fictitious Business Name:
___________________________
2. Mailing Address:
___________________________
___________________________
3. Contact Person/Title:
___________________________
4. Telephone Number:
Email Address:
5. CFL License Number:
					 _______________
6. Do you have any
					 outstanding enforcement actions or deficiencies with any government agency at
					 the time of this application?
Yes [], please attach an explanation, marked as Exhibit
						2, and documentation of the enforcement actions or deficiencies.
No []
7. If you are not licensed under the CFL, do
					 you have any outstanding enforcement or other disciplinary actions taken
					 against you by any of California's financial regulators or by a financial
					 regulator of another state?
Yes [], applicant is not eligible to apply concurrently
						for a license under the CFL and to participate in the pilot program. Applicant
						must first apply for a CFL license under Section
						1422 of the rules.
No [], the Application for a License Under the California
						Financing Law is attached.
8. Have you developed policies and procedures
					 you will implement to respond to questions raised by applicants and borrowers
					 regarding their loans, including those involving finders, and to address
					 customer complaints as soon as reasonably practicable?
Yes [], Please attach a copy of these policies and
						procedures.
No []
9. Has your credit education program or
					 seminar been approved by the Commissioner as required under Section
					 22370, subdivision (g)(1), of the
					 Financial Code?
Yes [], approved by the Commissioner on []
						(month/day/year)
No [], attached is the credit education program or
						seminar, marked as Exhibit 3, for the Commissioner's review and
						approval.
No [], the credit education program or seminar will be
						submitted to the Commissioner for review and approval at a later time. Licensee
						shall not offer any credit education program or seminar that has not been
						previously reviewed and approved by the Commissioner for use, and licensee
						shall not disburse loan proceeds to a borrower prior to offering an approved
						credit education program or seminar to the borrower.
10. Are you a data furnisher with a consumer
					 reporting agency that meets the definition in Section
					 603(p) of the
					 federal Fair Credit Reporting Act (15 U.S.C. Sec.
					 1681a(p))?
Yes [], the following information is provided:
Name of Credit Reporting Agency
Date Accepted
_______________________________
_______________________
_______________________________
_______________________
_______________________________
_______________________
No [], licensee or applicant has not at this time been
						accepted as a data furnisher. Information is attached, marked as Exhibit 4, for
						the Commissioner's review and approval, that 1) licensee will be accepted as a
						data furnisher, once it achieves a lending volume required of data furnishers
						of its type by a consumer reporting agency, and 2) lending volume will be
						achieved within the first six months of the licensee commencing
						lending.
11. Will you report
					 to a consumer reporting agency the payment performance of each borrower on all
					 loans made under this program as required under Section
					 22370, subdivision(f)(2), of the
					 Financial Code?
Yes [], licensee or applicant agrees to report all
						borrower payment performance from inception of lending under the program as
						soon as practicable after acceptance into the program, but no later than six
						months after acceptance into the program, and agrees to notify each borrower,
						as soon as practicable following acceptance as a data furnisher, the name of
						the consumer reporting agency or agencies to which the borrower's payment
						history will be reported.
No []
12. Do you plan to use the services of a
					 finder as defined under Section
					 22371, subdivision (b), of the
					 Financial Code?
Yes [], please attach a list of the name of the
						finder(s), marked as Exhibit 5, and a completed Notification to Commissioner of
						Financial Protection and Innovation of Finder Registration for each finder,
						marked as Exhibit 6.
No []
13. Attach a list of branch managers by
					 branch location, marked as Exhibit 7. Is any branch manager responsible for
					 more than one branch location?
Yes [], the request to the Commissioner for approval to
						appoint the branch manager(s) with responsibility for the identified multiple
						branch locations and the information required under Financial Code Section
						22378
						concerning the centralized nature of underwriting and other key business
						activities performed by the licensee, is attached for the Commissioner's
						review, marked as Exhibit 8.
No []
The licensee has duly caused this application to be
						signed on its behalf by the undersigned, thereunto duly authorized.
The undersigned, on behalf of the licensee, acknowledges
						that this application and all exhibits thereto are subject to public inspection
						pursuant to Section
						250.9.1, Chapter 3, Title 10,
						California Code of Regulations. A request for confidentiality of certain
						documents may be requested pursuant to Section
						250.10. If a request for
						confidential treatment is granted (or denied), the person making such request
						will be notified in writing.
I declare under penalty of perjury that I have read the
						foregoing application, including Exhibits attached thereto, or filed therewith,
						and know the contents thereof, and that the statements therein are true and
						correct. I further declare, on behalf of the licensee, that I have read and
						understand the Financial Code and regulations pertaining to the California
						Financing Law and the Pilot Program for Increased Access to Responsible Small
						Dollar Loans under the California Financing Law.
___________________________
(Licensee)
Executed at
								___________________________
___________________________
(City, County, and State)
(Signature of
								Declarant)
Date___________________________
___________________________
(Typed Name of Declarant)
___________________________
(Title)
CFL 1602 (8/21)