Article 3. Administration And Operations of California Financial Code >> Division 10. >> Chapter 1. >> Article 3.
The commissioner may make general rules and regulations and
specific rulings, demands, and findings for the enforcement of this
division, in addition to, and within the general purposes of, this
(a) It is unlawful for any person to knowingly alter,
destroy, mutilate, conceal, cover up, falsify, or make a false entry
in any record, document, or tangible object with the intent to
impede, obstruct, or influence the administration or enforcement of
any provision of this division.
(b) It is unlawful for any person to knowingly make an untrue
statement to the commissioner during the course of licensing,
investigation, or examination, with the intent to impede, obstruct,
or influence the administration or enforcement of any provision of
(a) Each licensee shall pay to the commissioner its pro rata
share of all costs and expenses reasonably incurred in the
administration of this division, as estimated by the commissioner,
for the ensuing year and any deficit actually incurred or anticipated
in the administration of the program in the year in which the
assessment is made. The assessment will be based on the number of
(b) On or before the 20th day of May in each year, the
commissioner shall notify each licensee by mail of the amount
assessed and levied against it and that amount shall be paid within
30 days thereafter. If payment is not made within 30 days, the
commissioner may assess and collect a penalty, in addition to the
assessment, of 1 percent of the assessment for each month or part of
a month that the payment is delayed or withheld.
(c) If a licensee fails to pay the assessment on or before the
30th day of June following the day upon which payment is due, the
commissioner may by order summarily suspend or revoke the certificate
issued to the licensee. If, after an order is made, a request for
hearing is filed in writing within 30 days, and a hearing is not held
within 60 days thereafter, the order is deemed rescinded as of its
effective date. During any period when its certificate is revoked or
suspended, a licensee shall not conduct business pursuant to this
division except as may be permitted by order of the commissioner.
However, the revocation, suspension, or surrender of a certificate
shall not affect the powers of the commissioner as provided in this
All money paid or collected under this division shall be
deposited in the State Treasury to the credit of the State
Corporations Fund. The administration of this division shall be
supported out of the State Corporations Fund upon appropriation by
(a) A license, along with any currently effective order of
the commissioner approving a different name pursuant to Section
23023, shall be conspicuously posted in the place of business
authorized by the licensee.
(b) A license is not transferable or assignable. A license issued
to a partnership or limited partnership is not transferred or
assigned within the meaning of this section by the death, withdrawal,
or admission of a partner, general partner, or limited partner,
unless the death, withdrawal, or admission dissolves the partnership
to which the license was issued.
Every licensee shall post a complete, detailed, and
unambiguous schedule of fees. The information required by this
section shall be clear, legible, and in letters not less than
one-half inch in height. The information shall be posted in a
conspicuous location in the unobstructed view of the public within
the licensee's location.
A licensee shall maintain only one place of business under
an original or amended license issued pursuant to Section 23008. The
commissioner may issue more than one license to the same licensee
upon compliance with all the provisions of this division governing an
original issuance of a license.
(a) If a licensee desires to change its place of business to
a street address other than that designated in its license, the
licensee shall give written notice to the commissioner at least 10
days prior to the change. The commissioner shall then provide written
approval of the change and the date of the approval. A new
application shall not be required for a change in the address of an
existing business location previously licensed pursuant to this
(b) If notice is not given at least 10 days prior to the change,
as required by subdivision (a), the commissioner may assess a civil
penalty on the licensee not to exceed five hundred dollars ($500).
No licensee shall transact the business licensed or make any
transaction provided for by this division under any other name or at
any other place of business than that named in the license except
pursuant to a currently effective written order of the commissioner
authorizing the other name or other place of business.
Each licensee shall keep and use books, accounts, and
records that will enable the commissioner to determine if the
licensee is complying with the provisions of this division and with
the rules and regulations promulgated by the commissioner. Each
licensee shall maintain any other records as required by the
commissioner. The commissioner or a designee of the commissioner may
examine those records at any reasonable time. Upon the request of the
commissioner, a licensee shall file an authorization for disclosure
of financial records of the licensed businesses pursuant to Section
7473 of the Government Code. All records shall be kept for two years
following the last entry on a deferred deposit transaction and shall
enable an examiner to review the recordkeeping and reconcile each
consumer deferred deposit transaction with documentation maintained
in the consumer's deferred deposit transaction file records.
The department shall maintain a toll-free telephone number
for deferred deposit transaction customers to make complaints and
express concerns regarding the product or a specific licensee.
On or before March 15 of each year, beginning March 2006,
each licensee shall file an annual report with the commissioner
pursuant to procedures that the commissioner shall establish. The
licensee's annual report shall be kept confidential pursuant to
Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
of the Government Code and any regulations adopted thereunder. The
annual consolidated report shall be prepared by the commissioner and
made available to the public. For the previous calendar year, these
reports shall include the following:
(a) The total number and dollar amount of deferred deposit
transactions made by the licensee.
(b) The total number of individual customers who entered into
deferred deposit transactions.
(c) The minimum, maximum, and average amount of deferred deposit
(d) The average annual percentage rate of deferred deposits.
(e) The average number of days of deferred deposit transactions.
(f) The total number and dollar amount of returned checks.
(g) The total number and dollar amount of checks recovered.
(h) The total number and dollar amount of checks charged off.
(a) No licensee shall advertise, print, display, publish,
distribute, or broadcast, or cause or permit to be advertised,
printed, displayed, published, distributed or broadcast, in any
manner, any statement or representation with regard to the business
subject to the provisions of this division, including the rates,
terms, or conditions for making or negotiating deferred deposit
transactions, that is false, misleading, or deceptive, or that omits
material information that is necessary to make the statements not
false, misleading, or deceptive.
(b) No licensee shall place an advertisement disseminated
primarily in this state for a deferred deposit transaction unless the
licensee discloses in the printed text of the advertisement, or the
oral text in the case of a radio or television advertisement, that
the licensee is licensed by the department pursuant to this division.
(c) The commissioner may require that rates of charges or fees, if
stated by the licensee, be stated fully and clearly in the manner
that the commissioner deems necessary to give adequate information
to, or to prevent misunderstanding by, prospective customers.
(d) No advertising copy shall be used after its use has been
disapproved by the commissioner and the licensee is notified in
writing of the disapproval.
(e) The commissioner may require licensees to maintain a file of
all advertising copy for a period of 90 days from the date of its
use. The file shall be available to the commissioner upon request.