AFSA Comments on CA Commercial Financing Disclosures
AFSA’s State Government Affairs (SGA) team recently sent a letter to the California Department of Business Oversight (DBO)—now renamed the Department of Financial Protection and Innovation—to provide comments on the department’s recently proposed rules for commercial financing disclosures. The rules implement a law enacted by the legislature in 2018 that created significant new disclosure requirements for commercial accounts. Though AFSA members primarily offer consumer credit, our members also provide financing to commercial entities in the form of floorplan financing to auto dealers. The law largely exempts financing to auto dealers above certain amounts, so AFSA’s letter requested clear rules consistent with the exemption. AFSA also requested an amendment to the proposed rules clearly stating that certain contract clauses are not deemed as security interests and thus would not qualify as lease financing.
AFSA previously commented on the original legislation and previous versions of the proposed rules. Those previous comment letters and the most recent submission can be found on the SGA direct advocacy page.
October 30th, 2020
