Requirements After a CDDTL License Has Been Issued

The license remains in effect until surrendered, suspended or revoked.

FAQs – Doing Business

Reporting Requirements

The following reports must be submitted by all CDDTL licensees by the due date noted:

Licensees must file an annual report by March 15 of each year commencing on March 15, 2006. The licensee’s annual report shall be kept confidential. The annual report shall include the following information for the previous calendar year:

  • The total number and dollar amount of deferred deposit transactions made by the licensee.
  • The total number of individual customers who entered into deferred deposit transactions.
  • The minimum, maximum, and average amount of deferred deposit transactions.
  • The average annual percentage rate of deferred deposits.
  • The average number of days of deferred deposit transactions.
  • The total number and dollar amount of returned checks.
  • The total number and dollar amount of checks recovered.
  • The total number and dollar amount of checks charged off.

Licensees are required to notify the Department of any change in location at least 10 days prior to the move. Failure to do so may subject the licensee to a civil penalty not to exceed $500.

A license is not transferable or assignable. A licensee is required to notify the Department of any change of its officers, directors, or any persons named in the application within sixty days from the effective date of the change.

Annual Assessment

To maintain your license, a licensee is required to pay an assessment for each licensed location on an annual basis. The assessment shall be the pro rata share of all costs and expenses reasonably incurred in the administration of the CDDTL. The assessment notices shall be mailed to each licensee on or before the 20th day of May each year and must be paid within 30 days. The failure to pay the assessment by the due date may result in penalties, and/or suspension or revocation of the license.

Surety Bond Requirement

Licensee must maintain a surety bond at all times in the amount of $25,000. The bond shall be payable to the Commissioner and issued by an insurer authorized to do business in this state. For licensees with multiple licensed locations, only one surety bond in the amount of twenty-five thousand dollars ($25,000) is required. The bond shall be used for the recovery of expenses, fines, and fees levied by the Commissioner or for losses or damages incurred by consumers as the result of a licensee’s noncompliance with the requirements of the CDDTL.

Net Worth Requirement

A licensee, regardless of the number of locations, must maintain a net worth of at least $25,000 at all times.

Books and Records

Licensees are subject to statutory books and record requirements. Each licensee shall keep and use books, accounts, and records that will enable the Commissioner to determine if the licensee is complying with the provisions of the CDDTL and with the rules and regulations promulgated by the Commissioner. Each licensee shall maintain any other records as required by the Commissioner.

Regulatory Examination

The Commissioner may examine the business, books and records of the licensee any time, but not less than once every two years. The Commissioner’s representatives shall have free access to the offices and places of business, books, accounts, papers, records, files, safes, and vaults of the licensee. The licensee shall pay the costs of the examination.

Other requirements

  1. An advertisement disseminated primarily in California for a deferred deposit transaction, shall disclose in the printed text of the advertisement, or the oral text in the case of a radio or television advertisement, that the licensee is licensed by the Department of Financial Protection and Innovation pursuant to the California Deferred Deposit Transaction Law. Licensees are required to maintain a file of all advertising copy for a period of 90 days from the date of its use. The file shall be available to the Commissioner upon request.
  2. The following notices shall be clearly and conspicuously posted in the unobstructed view of the public  by all licensees in each location of business in letters not less than one-half inch in height:
    • The licensee cannot use the criminal process against a consumer to collect any deferred deposit transaction.
    • The schedule of all charges and fees to be charged on those deferred deposit transactions with an example of all charges and fees that would be charged on at least a one-hundred-dollar($100) and a two-hundred-dollar($200) deferred deposit transaction, payable in 14 days and 30 days, respectively, giving the corresponding annual percentage rate.
  3. No licensee shall transact the business licensed or make any deferred deposit transactions under any other name or at any other place of business than that named in the license unless there is an order by the Commissioner authorizing the other name or other place of business.
  4. The license, along with any orders approving a different name, shall be conspicuously posted in the place of business authorized by the license.

Approved by Marchael Kelly 6/2019

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Last updated: Feb 26, 2021 @ 7:04 pm