STUDENT LOAN SERVICERS
AB 2251 (Stone)
Student loan servicers: licensing and regulation: Student Loan Servicing Act.
AB 2251, Chapter 824, Statutes 2016
(Financial Code)
This bill adds a new Division, the “California Student Loan Servicing Act (Act),” to the
Financial Code. The Act requires servicers to adhere to specified borrower protections
when servicing student loans. The bill also expands the authority of the Commissioner of
Business Oversight to include the licensure, regulation and oversight of student loan
servicers. This bill ...

California consumer finance lenders who lend to service members must also comply with the Military Lending Act.    California Finance Lenders Law incorporates the Military Lending Act as follows:

Financial Code 22345. “(a) Any person who violates any provision of Section 670 of the John Warner National Defense Authorization Act for Fiscal Year

2007 (Public Law 109-364) or any provision of Section 232 of Title 32

of the Code of Federal Regulations, as published on August 31, 2007,

in Volume 72 of the Federal Register, ...

The California Department of Business Oversight (DBO), the agency that grants the Finance Lenders License, recently was named by American Banker as one of eight state and federal regulators to watch in the online lending arena. From the American Banker:

California officials are conducting an inquiry into 14 firms’ compliance with laws and regulations dealing with referral fees, bank partnerships and fair lending. The Bay Area is to home to numerous large U.S. online lenders, including Lending Club, Prosper Marketplace, Social ...