Who May Apply to Participate in the Affordable Credit-Building Opportunities Pilot Program
The Affordable Credit-Building Opportunities Pilot Program permits licensed finance lenders to seek approval to participate in a pilot program with the following features:
- Lenders may offer loans through “finders”;
- Unsecured loans may be from $250 to $2,500;
- The interest rates are capped at amounts that are marginally higher than the California Finance Lenders Law has previously permitted;
- Borrowers are entitled to credit education; and
- Borrowers may build credit by having loan performance reported to a major credit reporting agency.
The program has additional requirements, and therefore finance lenders are encouraged to review the new law and regulations to see if participation in the program is right for them.