California AB2350 prohibits consumer loans for rent payments and regulates rent payment services.

California AB2350 adds provisions to the Financial Code to prohibit licensees from making consumer loans for rent payments. It also regulates services that assist with rent payments, limiting fees and requiring clear disclosures. Servicers can only charge fees actually incurred for completing transactions, and missed payment fees cannot exceed 0.5 percent of the rent amount. Servicers must provide clear disclosures before enrolling consumers and cannot report delinquent payments to credit agencies. The bill also limits the number of installment payments and automatic withdrawals.

California AB2350 prohibits consumer loans for rent payments and regulates rent payment services.

California AB2350 adds provisions to the Financial Code to prohibit licensees from making consumer loans for rent payments. It also regulates services that assist with rent payments, limiting fees and requiring clear disclosures. Servicers can only charge fees actually incurred for completing transactions, and missed payment fees cannot exceed 0.5 percent of the rent amount. Servicers must provide clear disclosures before enrolling consumers and cannot report delinquent payments to credit agencies. The bill also limits the number of installment payments and automatic withdrawals.