Responsible Small Dollar Loans Pilot Program
Senate Bill 318 (Chap. 467, Stats. 2013) was signed into law on October 1, 2013 and is operative January 1, 2014. The bill created the Pilot Program for Increased Access to Responsible Small Dollar Loans (RSDL) to increase the availability of responsible small dollar installment loans of at least $300 but less than $2,500. Finance lenders who are licensed underthe CFLL and approved by the Commissioner of Business Oversight (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 $2,500, 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.