“Consumer loan” means a loan, whether secured by either real or personal property, or both, or unsecured, the proceeds of which are intended by the borrower for use primarily for personal, family, or household purposes. For purposes of determining whether a loan is a consumer loan, the lender may rely on any written statement of intended purposes signed by the borrower. The statement may be a separate statement signed by the borrower, or may be contained in a loan application or other document signed by the borrower. The lender shall not be required to
ascertain that the proceeds of the loan are used in accordance with the statement of intended purposes. Nothing in this section shall authorize the taking of real property as security, except as specified in Section 22330.
Notes of Decisions
Cited in
3
cases (
1 in the last 5 years), 2017–2023 · leading case:
T'Bear v. Forman, 359 F. Supp. 3d 882 (N.D. Cal. 2019).
T'Bear v. Forman, 359 F. Supp. 3d 882 (N.D. Cal. 2019).
· cites it 2× “" Cal. Fin. Code § 22203 . Conversely, a " '[c]ommercial loan' means a loan of a principal amount of five thousand dollars ($ 5,000) or more .”
Eduardo De La Torre v. Cashcall, Inc., 854 F.3d 1082 (9th Cir. 2017).
“Cal. Fin. Code § 22203 . The FLL prescribes maximum interest rates for loans below $2500, but this interest rate limitation “does not apply to any loan of a bona fide principal amount of two thousand five hundred dollars ($2,500) or more.”
Law Fin. Grp., LLC v. Key, 531 P.3d 326 (Cal. 2023).
“The panel agreed with Key that because the loan was meant to finance a dispute about her parental inheritance, the loan should be classified not as a “commercial loan” but as a “consumer loan” — that is, a loan “the proceeds of which are intended by the borrower for use…”
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