Section 22320.5 Of Article 3. Loan Regulations From California Financial Code >> Division 9. >> Chapter 2. >> Article 3.
22320.5
. (a) A licensee may contract for and receive a delinquency
fee not in excess of one of the following amounts:
(1) For a period in default of not less than 10 days, an amount
not in excess of ten dollars ($10).
(2) For a period in default of not less than 15 days, an amount
not in excess of fifteen dollars ($15).
(b) The delinquency fee may not be collected more than once for
the same default and may be collected at the time of the default or
at any time thereafter. If the delinquency fee is deducted from any
payment received after default occurs, and the deduction results in
the default of a subsequent installment, no fee may be collected for
the resulting default. The delinquency fee under this section is not
included in charges defined in this division or in determining
applicable maximum charges that may be made under this article.
(c) For open-end loans made under Article 5 (commencing with
Section 22450), a licensee shall not collect or receive the
delinquency fee set forth in subdivision (a) unless there is a
minimum of 20 days, inclusive, between the monthly billing date and
the date upon which the minimum payment is due, exclusive of the
applicable grace period provided in subdivision (a).
(d) This section shall not apply to precomputed loans as described
in Section 22400.