§ 18055 Loan Advertising Truth Rules

Financial Code·California

AI SummaryVerified

This law makes it illegal for companies that give industrial loans to run ads that are false, misleading, or deceptive about loan rates, terms, or investment certificates.

Key Takeaways

•Ads about loan rates or terms must be truthful.
•Ads about investment certificates must not be deceptive.
•The rule covers any way the ad is shared — print, online, radio, etc.

Example

A loan company runs a flyer that says "Get a loan at 3% interest" but actually charges 10% interest.

The ad is misleading because the promised rate is not true, so the company could be fined under this law.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 18055 Loan Advertising Truth Rules

No person shall advertise, print, display, publish, distribute, or broadcast, or cause or permit to be advertised, printed, displayed, published, distributed, or broadcast, in any manner in connection with the business of an industrial loan company any statement or representation with regard to the rates, terms, or conditions for making or negotiating loans, or with regard to investment certificates, which is false, misleading, or deceptive. (Added by Stats. 1976, Ch. 964.)

Last verified: January 11, 2026

Key Terms

false misleading deceptive rates terms conditions loans investment certificates industrial loan company

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 18055.

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Key Terms

Related Statutes

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Key Takeaways

Example

Key Terms

Related Statutes

References