§ 1789.10. Citation This title shall be known and may be cited as the "Credit Services Act of 1984." Added Stats 1984 ch 1177 §1. § 1789.11. Legislative findings and declarations The Legislature finds and declares that: (a) The ability to obtain and use credit has become of great importance to consumers, who have a vital interest in establishing and maintaining their credit worthiness and credit standing. As a result, consumers who have experienced credit problems may seek assistance from credit services organizations which offer to obtain credit or improve the credit standing of such consumers. Certain advertising and business practices of some credit services organizations have worked a financial hardship upon the people of this state, often those who are of limited economic means and inexperienced in credit matters. Credit services organizations have significant impact upon the economy and well-being of this state and its people. (b) The purposes of this title are to provide prospective buyers of services of credit services organizations with the information necessary to make an intelligent decision regarding the purchase of those services and to protect the public from unfair or deceptive advertising and business practices. (c) This title shall be construed liberally to achieve these purposes. Added Stats 1984 ch 1177 §1. § 1789.12. Definitions As used in this title: (a) "Credit services organization" means a person who, with respect to the extension of credit by others, sells, provides, or performs, or represents that he or she can or will sell, provide or perform, any of the following services, in return for the payment of money or other valuable consideration: (1) Improving a buyer's credit record, history, or rating. (2) Obtaining a loan or other extension of credit for a buyer. (3) Providing advice or assistance to a buyer with regard to either paragraph (1) or (2). (b) "Credit services organization" does not include any of the following: (1) Any person organized, chartered, or holding a license or authorization certificate to make loans or extensions of credit pursuant to the laws of this state or the United States who is subject to regulation and supervision by an official or agency of this state or the United States and who is in the business of making those loans or extensions of credit. (2) Any bank or savings institution specified in subdivision (a) or (b) of Section 5102 of the Financial Code, whose deposits or accounts are eligible for insurance by the Federal Deposit Insurance Corporation. * * * (3) Any person licensed as a prorater by the Department of Corporations when the person is acting within the course and scope of that license. (4) Any person licensed as a real estate broker performing an act under the Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code). (5) Any attorney licensed to practice law in this state, where the attorney renders services within the course and scope of the practice of law, unless the attorney is an employee of, or otherwise directly affiliated with, a credit services organization. (6) Any broker-dealer registered with the Securities and Exchange Commission or the Commodity Futures Trading Commission where the broker-dealer is acting within the course and scope of the regulation. (7) Any nonprofit organization described in Section 501(c)(3) of the Internal Revenue Code that, according to a final ruling or determination by the Internal Revenue Service, is both of the following: (A) Exempt from taxation under Section 501(a) of the Internal Revenue Code. (B) Not a private foundation as defined in Section 509 of the Internal Revenue Code. An advance ruling or determination of tax-exempt or foundation status by the Internal Revenue Service does not meet the requirements of this paragraph. (c) "Buyer" means any natural person who is solicited to purchase or who purchases the services of a credit services organization. (d) "Extension of credit" means the right to defer payment of debt or to incur debt and defer its payment, offered or granted primarily for personal, family, or household purposes. (e) "Consumer credit reporting agency" means a consumer credit reporting agency subject to the Consumer Credit Reporting Agencies Act, Title 1.6 (commencing with Section 1785.1). (f) "Person" includes an individual, corporation, partnership, joint venture, or any business entity. Added Stats 1984 ch 1177 §1. Amended Stats 1992 ch 651 §2 (AB 2999). Amended Stats 1994 ch 792 §1 (AB 1922), ch 1010 §38 (SB 2053) (ch 792 prevails). Amendments: 1992 Amendment: (1) Substituted "a loan or other" for "an" in subd (a)(2) of the first paragraph; (2) amended the second paragraph of subd (a) by (a) adding "and who is in the business of making those loans or extensions of credit" at the end of subd (1); (b) substituting "institution specified in subdivision (a) or (b) of Section 5102 of the Financial Code," for "and loan institution" in subd (2); (c) deleting "or the Federal Savings and Loan Insurance Corporation" at the end of subd (2); (d) substituting subd (5) for former subd (5) which read: "(5) Any person licensed as a real estate broker by this state where the person is acting within the course and scope of that license."; (e) substituting "attorney" for "person" both times it appears in subd (6); (f) adding the comma after "this state" in subd (6); (g) substituting "the practice of law, unless the attorney is an employee of, or otherwise directly affiliated with, as credit services organization" for "his or her practice as an attorney at law" in subd (6); (3) substituted "the" for "such" after "scope of" in subd (7); (4) added subd (d); and (5) redesignated former subd (d) to be subd (e). 1994 Amendment: (1) Added subdivision designation (b); (2) deleted former subd (b)(3) which read: "(3) Any nonprofit organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code."; (3) redesignated former subds (4)-(7) to be subds (b)(3)-(b)(6); (4) added subd (b)(7) and the last paragraph of subd (b); and (5) redesignated former subds (b)-(e) to be subds (c)-(f). § 1789.13. Prohibited actsA credit services organization, and its salespersons, agents, representatives, and independent contractors who sell or attempt to sell the services of a credit services organization, shall not do any of the following: (a) Charge or receive any money or other valuable consideration prior to full and complete performance of the services the credit services organization has agreed to perform for or on behalf of the buyer. (b) Fail to perform the agreed services within six months following the date the buyer signs the contract for those services. (c) Charge or receive any money or other valuable consideration for referral of the buyer to a retail seller or other credit grantor who will or may extend credit to the buyer, if the credit which is or will be extended to the buyer (1) is upon substantially the same terms as those available to the general public or (2) is upon substantially the same terms that would have been extended to the buyer without the assistance of the credit services organization. (d) Make, or counsel or advise any buyer to make, any statement which is untrue or misleading and which is known, or which by the exercise of reasonable care should be known, to be untrue or misleading, to a consumer credit reporting agency or to any person who has extended credit to a buyer or to whom a buyer is applying for an extension of credit, such as statements concerning a buyer's identification, home address, creditworthiness, credit standing, or credit capacity. (e) Remove, or assist or advise the buyer to remove, adverse information from the buyer's credit record which is accurate and not obsolete. (f) Create, or assist or advise the buyer to create, a new credit record by using a different name, address, social security number, or employee identification number. (g) Make or use any untrue or misleading representations in the offer or sale of the services of a credit services organization, including either of the following: (1) Guaranteeing or otherwise stating that the organization is able to delete an adverse credit history, unless the representation clearly discloses, in a manner equally as conspicuous as the guarantee, that this can be done only if the credit history is inaccurate or obsolete and is not claimed to be accurate by the creditor who submitted the information. (2) Guaranteeing or otherwise stating that the organization is able to obtain an extension of credit, regardless of the buyer's previous credit problems or credit history, unless the representation clearly discloses, in a manner equally as conspicuous as the guarantee, the eligibility requirements for obtaining an extension of credit. (h) Engage, directly or indirectly, in any act, practice, or course of business which operates or would operate as a fraud or deception upon any person in connection with the offer or sale of the services of a credit services organization. (i) Advertise or cause to be advertised, in any manner, the services of the credit services organization, without being registered with the Department of Justice. (j) Fail to maintain an agent for service of process in this state. (k) Transfer or assign its certificate of registration. (l ) Submit a buyer's dispute to a consumer credit reporting agency without the buyer's knowledge. (m) Use a consumer credit reporting agency's telephone system or toll-free telephone number to represent the caller as the buyer in submitting a dispute of a buyer or requesting disclosure without prior authorization of the buyer. Added Stats 1984 ch 1177 §1. Amended Stats 1992 ch 651 §3 (AB 2999). Amended Stats 1994 ch 792 §2 (AB 1922). Amendments: 1992 Amendment: (1) Substituted "representatives, and independent contractors" for "and representatives" in the introductory clause; (2) amended subd (a) by deleting (a) ", unless the credit services organization has, in conformity with Section 1789.18, either obtained a surety bond issued by a surety company admitted to do business in this state or established a trust account at a federally insured bank or savings and loan association located in this state" at the end; and (b) the former second sentence which read: "If a credit services organization is in compliance with this subdivision, the salesperson, agents, and representatives who sell the services of such organization shall not be required to obtain the surety bond or establish the trust account provided for by this title."; (3) added subd (b); (4) redesignated former subds (b) and (c) to be subds (c) and (d); (5) amended subd (c) by (a) deleting "solely" after "valuable consideration"; (b) adding "or other credit grantor"; (c) adding subdivision designation (c)(1); and (d) adding subd (c)(2); (5) substituted ", such as statements concerning a buyer's identification, home address," for "with respect to a buyer's" near the end of subd (d); (6) deleted former subd (d) which read: "(d) Make or use any untrue or misleading representations in the offer or sale of the services of a credit services organization or engage, directly or indirectly, in any act, practice, or course of business which operates or would operate as a fraud or deception upon any person in connection with the offer or sale of the services of a credit services organization."; and (7) added subds (e)-(m). 1994 Amendment: Substituted "six months" for "90 days" in subd (b). § 1789.14. Required statement of information Prior to the execution of a contract or agreement between the buyer and a credit services organization , the credit services organization shall provide the buyer a statement in writing, containing all the information required by Section 1789.15. The credit services organization shall maintain on file or microfilm for a period of two years an exact copy of the statement, personally signed by the buyer, acknowledging receipt of a copy of the statement. Added Stats 1984 ch 1177 §1. Amended Stats 1992 ch 651 §4 (AB 2999). Amendments: 1992 Amendment: Deleted "or prior to the receipt by the credit services organization of any money or other valuable consideration whichever occurs first" after "services organization" in the first sentence. § 1789.15. Contents of information statement The information statement shall include all of the following: (a) A complete and detailed description of the services to be performed by the credit services organization for or on behalf of the buyer and the total amount the buyer will have to pay, or become obligated to pay, for the services. (b) The buyer's right to proceed against the bond under the circumstances and in the manner set forth in Section 1789.18. (c) The name and address of the surety company which issued the bond. (d) A complete and accurate statement of the availability of nonprofit credit counseling services. The information statement shall be printed in at least 10-point boldface type and shall include the following statement or any substantially equivalent alternative that is approved by the Department of Justice: "CONSUMER CREDIT FILE RIGHTS UNDER STATE AND FEDERAL LAW" You have a right to obtain a copy of your credit file from a consumer credit reporting agency. You may be charged a reasonable fee not exceeding eight dollars ($8). There is no fee, however, if you have been turned down for credit, employment, insurance, or a rental dwelling because of information in your credit report within the preceding 60 days. The consumer credit reporting agency must provide someone to help you interpret the information in your credit file. You have a right to dispute inaccurate information by contacting the consumer credit reporting agency directly. However, neither you nor any credit repair company or credit services organization has the right to have accurate, current, and verifiable information removed from your credit report. Under the Federal Fair Credit Reporting Act, the consumer credit reporting agency must remove accurate, negative information from your report only if it is over seven years old. Bankruptcy information can be reported for 10 years. If you have notified a credit reporting agency in writing that you dispute the accuracy of information in your credit file, the consumer credit reporting agency must then reinvestigate and modify or remove inaccurate information. The consumer credit reporting agency may not charge a fee for this service. Any pertinent information and copies of all documents you have concerning an error should be given to the consumer credit reporting agency. If reinvestigation does not resolve the dispute to your satisfaction , you may send a brief statement to the consumer credit reporting agency to keep in your file, explaining why you think the record is inaccurate. The consumer credit reporting agency must include your statement about disputed information in any report it issues about you. You have a right to cancel the contract for any reason within five working days from the date you signed it. If for any reason you do cancel the contract during this time, you do not owe any money. You have a right to sue a credit services organization if it misleads you." Added Stats 1984 ch 1177 §1. Amended Stats 1992 ch 651 §5 (AB 2999). Amendments: 1992 Amendment: Substituted the section for the former section which read: "The information statement shall include all of the following: "(a) A complete and accurate statement of the buyer's right to review any file on the buyer maintained by any consumer credit reporting agency, and the right of the buyer to receive a copy of that file, as provided by Sections 1785.10 and 1785.15. The statement shall include the statement that a copy of the buyer's file will be furnished free of charge by the consumer credit reporting agency if requested within 30 days of the buyer receiving notice of a denial of credit, and the approximate price the buyer will be charged by the credit reporting agency for a copy of the file. "(b) A complete and accurate statement of the buyer's right to dispute the completeness or accuracy of any item contained in any file on the buyer maintained by any consumer credit reporting agency, as provided by Section 1785.16. "(c) A complete and detailed description of the services to be performed by the credit services organization for or on behalf of the buyer and the total amount the buyer will have to pay, or become obligated to pay, for the services. "(d) If the credit services organization is required to obtain a surety bond or establish a trust account pursuant to Section 1789.13, the statement shall set forth both of the following: "(1) The buyer's right to proceed against the bond or trust account under the circumstances and in the manner set forth in Section 1789.18. "(2) The name and address of the surety company which issued the bond, or the name and address of the depository and the trustee and the account number of the trust account." § 1789.16. Contracts (a) A credit services organization shall not provide any service to a buyer except pursuant to a written contract that complies with this section. Every contract between the buyer and a credit services organization for the purchase of the services of the credit services organization shall be in writing, shall be dated, signed by the buyer, and include all of the following: (1) A conspicuous statement in size equal to at least 10-point boldface type, in immediate proximity to the space reserved for the signature of the buyer, as follows: "You, the buyer, may cancel this contract at any time prior to midnight of the fifth day after the date of the transaction. See the attached notice of cancellation form for an explanation of this right." (2) The terms and conditions of payment, including the total of all payments to be made by the buyer, whether to the credit services organization or to some other person. (3) A full and detailed description of the services to be performed by the credit services organization for the buyer, including all guarantees and all promises of full or partial refunds, and the estimated date by which the services are to be performed, or the estimated length of time for performing the services not to exceed six months or a shorter period consistent with the purposes of this title as may be prescribed by the Department of Justice. (4) The credit services organization's principal business address and the name and address of its agent other than the Secretary of State, in the State of California, authorized to receive service of process. (b) The contract shall be accompanied by a completed form in duplicate, captioned "Notice of Cancellation," which shall be attached to the contract and easily detachable, and which shall contain in type of at least 10-point the following statement written in the same language as used in the contract: "Notice of Cancellation" "You may cancel this contract, without any penalty or obligation, within five days from the date the contract is signed. "If you cancel, any payment made by you under this contract must be returned within 15 days following receipt by the seller of your cancellation notice. "To cancel this contract, mail or deliver a signed and dated copy of this cancellation notice, or any other written notice, to A copy of the fully completed contract and all other documents the credit services organization requires the buyer to sign shall be given to the buyer at the time they are signed. Added Stats 1984 ch 1177 §1. Amended Stats 1992 ch 651 §6 (AB 2999); Stats 1993 ch 285 §10 (AB 1340), effective July 30, 1993. Amended Stats 1994 ch 792 §3 (AB 1922). Amendments: 1992 Amendment: In addition to making technical changes, (1) added the first sentence of subd (a); (2) added "not to exceed 60 days or a shorter period consistent with the purposes of this title as may be prescribed by the Department of Justice" at the end of subd (a)(3); and (3) substituted "must" for "will" after "this contract" in the second paragraph of the notice in subd (b). 1993 Amendment: Substituted "90 days" for "60 days" in subd (a)(3). 1994 Amendment: Substituted "six months" for "90 days" in subd (a)(3). § 1789.17. Breach of contract The seller's breach of a contract under this title or of any obligation arising therefrom shall constitute a violation of this title. Added Stats 1984 ch 1177 §1. § 1789.18. Surety bond No credit services organization shall conduct business in this state unless the credit services organization has first obtained a surety bond in the principal amount of one hundred thousand dollars ($100,000) issued by an admitted surety and the bond complies with all of the following: (a) The bond shall be in favor of the State of California for the benefit of any person who is damaged by any violation of this title. The bond shall also be in favor of any individual damaged by those practices. (b) Any person claiming against the bond for a violation of this title may maintain an action at law against the credit services organization and against the surety . The surety shall be liable only for actual damages and not the punitive damages permitted under Section 1789.21. The aggregate liability of the surety to all persons damaged by a credit services organization's violation of this title shall in no event exceed the amount of the bond. (c) The bond shall be maintained for two years following the date on which the credit services organization ceases to conduct business in this state. A copy of the bond shall be filed with the Secretary of State. Added Stats 1984 ch 1177 §1. Amended Stats 1992 ch 651 §7 (AB 2999). Amendments: 1992 Amendment: In addition to making technical changes, (1) substituted the introductory clause for the former introductory clause which read: "If a credit services organization is required to obtain a surety bond or establish a trust account pursuant to Section 1789.13, the following procedures shall be applicable:"; (2) deleted former subd (a) which read: "(a) If a bond is obtained, a copy of it shall be filed with the office of the Secretary of State. If a trust account is maintained, notification of the depository, the trustee, and the account number shall be filed with the office of the Secretary of State."; (3) redesignated former subds (b)Ä(d) to be subds (a)Ä(c); (4) deleted "or trust account required" after "The board" the first time it appears in subd (a); (5) deleted "or trust account" before "shall also be" in subd (a) and before "for a violation" in subd (c); (6) substituted "individual" for "person" in the second sentence of subd (a); (7) deleted "or trustee" after "the surety" wherever it appears in subd (b); (8) deleted "trust account or" after "amount of the" near the end of subd (b); (9) substituted subd (d) for former subd (d) which read: "(d) The bond or the trust account shall be in an amount equal to 5 percent of the total amount of the fees charged buyers by the credit services organization under the contracts entered into between the credit services organization and such buyers during the previous 12 months, but in no case shall the bond be less than five thousand dollars ($5,000), or more than twenty-five thousand dollars ($25,000). The amount required shall be adjusted once a year, no later than the 10th day of the first month of the credit services organization's fiscal year."; and (10) added the last paragraph. § 1789.19. Defenses (a) Any waiver by a buyer of the provisions of this title shall be deemed contrary to public policy and shall be void and unenforceable. Any attempt by a credit services organization to have a buyer waive rights given by this title shall constitute a violation of this title. (b) In any proceeding involving this title, the burden of proving an exemption or an exception from a definition is upon the person claiming it. Added Stats 1984 ch 1177 §1. § 1789.20. Injunctions; Criminal proceedings (a) Any person who violates any provision of this title is guilty of a misdemeanor. Any superior court of this state shall have jurisdiction in equity to restrain and enjoin the violation of any provision of this title. The duty to institute actions for violation of this title, including equity proceedings to restrain and enjoin such a violation, is hereby vested in the Attorney General, district attorneys, and city attorneys. The Attorney General, any district attorney, or any city attorney may prosecute misdemeanor actions or institute equity proceedings, or both. This section shall not be deemed to prohibit the enforcement by any person of any right provided by this or any other law. (b) The misdemeanor provision of this section does not apply to a seller's breach of a contract subject to this title. Added Stats 1984 ch 1177 §1. § 1789.21. Civil actions (a) Any buyer injured by a violation of this title or by the credit services organization's breach of a contract subject to this title may bring any action for recovery of damages, or for injunctive relief, or both. Judgment shall be entered for actual damages, but in no case less than the amount paid by the buyer to the credit services organization, plus reasonable attorney's fees and costs. An award, if the trial court deems it proper, may be entered for punitive damages. (b) Any person, including, but not limited to, a consumer credit reporting agency, as defined in subdivision (d) of Section 1785.3, and any consumer of, or user of, a consumer credit report under the Consumer Credit Reporting Agencies Act (Title 1.6 (commencing with Section 1785.1), and any furnisher of credit information under the Consumer Credit Reporting Agencies Act, may bring an action for the recovery of damages or for injunctive relief, or both, for a violation of this title. Any person bringing such an action who prevails in the action shall be entitled to reasonable attorney's fees and costs. Added Stats 1984 ch 1177 §1. Amended Stats 1992 ch 651 §8 (AB 2999). Amended Stats 1994 ch 792 §4 (AB 1922). Amendments: 1992 Amendment: Added ", or for injunctive relief, or both" at the end of the first sentence. 1994 Amendment: (1) Designated the former section to be subd (a); and (2) added subd (b). § 1789.22. Applicability of other provisions The provisions of this title are not exclusive and do not relieve the parties or the contracts subject thereto from compliance with any other applicable provision of law. The remedies provided in this title for violation of any section of this title shall be in addition to any other procedures or remedies for any violation or conduct provided for in any other law. Added Stats 1984 ch 1177 §1. 1789.23. Severability of provisions If any provision of this title or if any application thereof to any person or circumstance is held invalid, the remainder of the title and the application of the provision to other persons and circumstances shall not be affected thereby. Added Stats 1984 ch 1177 §1. § 1789.24. Claims against deposits made in lieu of bond (a) When a deposit has been made in lieu of a bond pursuant to subdivision (a) of Section 1789.13 and Section 995.710 of the Code of Civil Procedure, the person asserting a claim against the deposit shall, in lieu of proceeding under Section 996.430 of the Code of Civil Procedure, establish the claim by furnishing evidence to the Secretary of State of a money judgment entered by a court, together with evidence that the claimant is a person described in subdivision (b) of Section 1789.18. (b) When a person has fully established the claim with the Secretary of State, the Secretary of State shall forthwith review and approve the claim and enter the date of approval thereon. The claim shall be designated an "approved claim." (c) When the first claim against a particular deposit account has been approved, it shall not be paid until the expiration of a period of 240 days after the date of its approval by the Secretary of State. Subsequent claims which are approved by the Secretary of State within the same 240-day period shall similarly not be paid until the expiration of the 240-day period. Upon the expiration of the 240-day period, the Secretary of State shall pay all approved claims from that 240-day period in full unless there are insufficient funds in the deposit account, in which case each approved claim shall be paid a pro rata share of the deposit account. (d) When the Secretary of State approves the first claim against a particular deposit account after the expiration of a 240-day period, the date of approval of that claim shall begin a new 240-day period to which subdivision (c) shall apply with respect to any amount remaining in the deposit account. (e) After a deposit account is exhausted, no further claims shall be paid by the Secretary of State. Claimants who have had their claims paid in full or in part pursuant to subdivision (c) or (d) shall not be required to make a contribution back to the deposit account for the benefit of other claimants. (f) When a deposit has been made in lieu of bond, as specified in subdivision (a), the amount of the deposit shall not be subject to attachment, garnishment, or execution with respect to an action or judgment against the credit services organization, other than as to an amount as no longer needed or required for the purpose of this title which would otherwise be returned to the credit services organization by the Secretary of State. Added Stats 1985 ch 275 §1. § 1789.25. Registration of organization; Change in required information (a) Every credit services organization shall file a registration application with, and receive a certificate of registration from, the Department of Justice before conducting business in this state. The Department of Justice shall not issue a certificate of registration until the bond required by Section 1789.18 has been filed with the office of the Secretary of State. The application shall be accompanied by a registration fee of one hundred dollars ($100). The registration application shall contain all of the following information: (1) The name and address where business is actually conducted of the credit services organization. (2) The names, addresses, and driver's license numbers of any and all persons who directly or indirectly own or control 10 percent or more of the outstanding shares of stock in the credit services organization. (3) Either of the following: (A) A full and complete disclosure of any litigation commenced against the credit services organization or any resolved or unresolved complaint that relates to the operation of the credit services organization and that is filed with the Attorney General or any other governmental authority of this state, any other state, or the federal government. With respect to each resolved complaint identified by the disclosure, the disclosure shall include a brief description of the resolution. (B) An acknowledged declaration under penalty of perjury stating that no litigation has been commenced and no unresolved complaint relating to the operation of the organization has been filed with the Attorney General or any other governmental authority of this state, any other state, or the federal government. (4) Other information that the Department of Justice requires, either at the time of application or thereafter. (b) The Department of Justice may conduct an investigation to verify the accuracy of the registration application. If the application involves investigation outside this state, the applicant credit services organization may be required by the Department of Justice to advance sufficient funds to pay the actual expenses of the investigation. Any nonresident applying for registration under this section shall designate and maintain a resident of this state as the applicant's agent for the purpose of receipt of service of process. (c) Each credit services organization shall notify the Department of Justice in writing within 30 days after the date of a change in the information required by subdivision (a), except that 30 days' advance notice and approval by the Department of Justice shall be required before changing the corporate name or address, or persons owning more than 10 percent of the shares of stock in the organization. Each credit services organization registering under this section may use no more than one fictitious or trade name and shall maintain a copy of the registration application in its files. The organization shall allow a buyer to inspect the registration application upon request. (d) A certificate of registration issued pursuant to this section shall expire annually on the last day of December but may be renewed by filing a renewal application accompanied by a fee not to exceed the Department of Justice's costs of administration. (e) The credit services organization shall attach to the registration statement a copy of the contract or contracts which the credit services organization intends to execute with its customers and a copy of the required bond. Added Stats 1992 ch 651 §9 (AB 2999). Title 1.6F Check Cashers [Added Stats 1990 ch 1391 §1.] § 1789.30. Disclosures Every check casher, as applicable to the services provided, shall post a complete, detailed, and unambiguous schedule of all fees for the (a) cashing of checks, drafts, money orders, or other commercial paper serving the same purpose, (b) for the sale or issuance of money orders, and (c) for the initial issuance of any identification card. Each check casher shall also post a list of valid identification which is acceptable in lieu of identification provided by the check casher. 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 check casher's premises. Added Stats 1990 ch 1391 §1 (AB 3096). § 1789.31. Definitions As used in this title, a "check casher" means a person or entity that for compensation engages, in whole or in part, in the business of cashing checks, warrants, drafts, money orders, or other commercial paper serving the same purpose. "Check casher" does not include a state or federally chartered bank, savings association, credit union, or industrial loan company. "Check casher" also does not include a retail seller engaged primarily in the business of selling consumer goods, including consumables, to retail buyers that cashes checks or issues money orders for a minimum flat fee not exceeding two dollars ($2) as a service to its customers that is incidental to its main purpose or business. Added Stats 1990 ch 1391 §1 (AB 3096). Amended Stats 1991 ch 228 v1 (AB 1889). Amendments: 1991 Amendment: (1) Substituted "engages, in whole or in part," for ", in whole or in part, engages" before "in the first sentence; (2) substituted ", savings association, credit union, or industrial loan company" for "or savings association" at the end of the second sentence; and (3) amended the third sentence by (a) adding "also" before "does not"; and (b) substituting "engaged primarily in the business of selling consumer goods, including consumables, to retail buyers" for "as defined in subdivision (b) of Section 1749.1" before "that cashes". § 1789.32. Violations Failure to post information as required by this title, or the imposition of fees or identification requirements contrary to the information posted, shall constitute an unfair business practice within the meaning of Section 17200 of the Business and Professions Code. Added Stats 1990 ch 1391 §1 (AB 3096). § 1789.35. Fees; Receipts (a) No check casher shall charge a fee for cashing a payroll check or government check in excess of 3 percent if identification is provided by the customer, or 3.5 percent without the provision of identification, of the face amount of the check, or three dollars ($3), whichever is greater. Identification, for purposes of this section, is limited to a California driver's license or a California identification card. (b) A check casher may charge a fee of no more than ten dollars ($10) to set up an initial account and issue an optional identification card for providing check cashing services. A replacement optional identification card may be issued at a cost not to exceed five dollars ($5). (c) A check casher shall provide a receipt to the customer for each transaction. (d) A willful violation of this section is a misdemeanor. Added Stats 1992 ch 1043 §2 (AB 2400. Note Stats 1992 ch 1043 also provides: SECTION 1. This act shall be known as the Check Casher's Fee Act of 1992. § 1789.37. Permits (a) Every owner of a check casher's business shall obtain a permit from the Department of Justice to conduct a check casher's business. (b) All applications for a permit to conduct a check casher's business shall be filed with the department in writing, signed by the applicant if an individual or by a member or officer authorized to sign if the applicant is a corporation or other entity, and shall state the name of the business, the type of business engaged in, and the business address. Each applicant shall be fingerprinted. (c) Each applicant for a permit to conduct a check casher's business shall pay a fee not to exceed the cost of processing the application, fingerprinting the applicant, and checking or obtaining the criminal record of the applicant, at the time of filing the application. (d) Each applicant shall annually, beginning one year from the date of issuance of a check casher's permit, file an application for renewal of the permit with the department, along with payment of a renewal fee not to exceed the cost of processing the application for renewal and checking or obtaining the criminal record of the applicant. (e) The department shall deny an application for a permit to conduct a check casher's business, or for renewal of a permit, if the applicant has a felony conviction involving dishonesty, fraud, or deceit, provided the crime is substantially related to the qualifications, functions, or duties of a person engaged in the business of check cashing. (f) The department shall adopt regulations to implement this section, and shall determine the amount of the application fees required by this section. The department shall prescribe forms for the applications and permit required by this section, which shall be uniform throughout the state. Added Stats 1992 ch 1043 §3 (AB 2400). Amended Stats 1993 ch 327 §1 (AB 465). Amendments: 1993 Amendment: Substituted the section for the former section which read: "The owner of a check cashier's business shall register his or her name, business name, social security number, and address with the Department of Justice. The Department of Justice, by regulation, shall establish a reasonable fee for the registration."