Bills · 2009-2010 Regular Session
motor vehicle title loans.
- Introduced, stopped here
- Passes Assembly, not reached
- Passes Senate, not reached
- Governor signs, not reached
- Law, not reached
Unfamiliar terms? Glossary
What this bill does
Plain-language analysis by the nonpartisan Legislative Reference Bureau
Under current law, a lender other than a bank, savings bank, savings and loan
association, or credit union generally must obtain a license from the Department of
Financial Institutions to assess a finance charge greater than 18 percent per year.
This type of lender is generally referred to as a "licensed lender." A licensed lender
must have a separate license for each place of business it maintains. Current law
also contains numerous provisions regulating consumer loans, which are generally
loans of $25,000 or less made to individuals for personal, family, or household
purposes.
This bill prohibits a licensed lender from making or offering a motor vehicle title
loan. The bill defines "motor vehicle title loan" as a loan of $25,000 or less to a
borrower that is, or is to be, secured by a nonpurchase money security interest in the
borrower's motor vehicle and that has an original term of not more than three
months. Under the bill, a "borrower" is an individual who obtains or seeks to obtain
a motor vehicle title loan for personal, family, or household purposes.