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HomeFinancial CodeDiv. 7Ch. 3Art. 2§ 18207 Consumer Loan Term Limits

§ 18207 Consumer Loan Term Limits

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 18207 Consumer Loan Term Limits

This law says that certain companies can give out small loans that must be paid back in one payment within a year, but they can't use this to trick people or avoid other rules.

Key Takeaways

  • •These loans must be paid back in full within one year.
  • •The loan can't be used to avoid other loan rules.
  • •The loan is for small amounts and not for buying a house or big property.

Example

You need $500 to fix your car and go to a loan company.

They can give you the money, but you have to pay it all back, plus extra fees, in one go within a year. They can't make the loan last longer than a year or use it to get around other loan rules.

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

Official Source
View on CA.gov

§ 18207 Consumer Loan Term Limits

An industrial loan company may make a consumer loan that is not secured primarily by real property or other type of loan which is repayable at maturity by a single payment which includes principal and charges. In no event shall such loans have a term in excess of one year or be made for the purpose of evading or avoiding this division. (Repealed and added by Stats. 1976, Ch. 964.)

Last verified: January 11, 2026

Key Terms

industrial loan companyconsumer loansingle paymentprincipal and chargesterm in excess of one year

Related Statutes

  • § 18208 Industrial Loan Collateral Requirements
  • § 18211 Loan Commitment Fees
  • § 18205 Loan Repayment Term Limits
  • § 18205.5 Unequal Payment Property Loans
  • § 18209 Federal Insured Loan Authority

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 18207.
View Official Source