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Calif. Financial Code § 22715
Amended by A. B. 1636
Effective date: January 1, 2018

A finance lender licensed under the Department of Business Oversight (DBO) who does not timely file an annual report or other report required by the DBO is subject to penalties of:

  • no more than $100 per day for the first five business days the report is overdue; or
  • $500 each business day after the first five.

The entire penalty is not to exceed $25,000.

A licensee may file a written request for a hearing to challenge the penalty within 30 days of receiving notice of the penalty. If the licensee does not file a request for a hearing within 30 days, the penalty will be final, and the licensee will have five days to pay it. In the event of a hearing, if the licensee is ordered to pay the penalty, they will have five days to do so.

The penalties do not apply when:

  • the new requirements impact the annual report, was not required the prior year and the DBO notifies the licensee of the new information required less than 90 days before the annual report’s due date; or
  • the new requirement impact reports other than the annual report and the DBO notifies the licensee of any other reporting requirement less than 90 days before the impacted report’s due date.

Read the bill text.

Editor’s note — These penalties apply only to lenders licensed under the DBO, not to CalBRE licensees.