§ 18008 Loan Charges Profit Prohibition

Financial Code·California

AI SummaryVerified

This law says that any extra profit or advantage you get from a loan—like fees from selling something tied to the loan—counts as a charge, except for regular insurance commissions.

Key Takeaways

•Any profit or advantage from a loan, such as fees from a collateral sale or purchase, is treated as a charge.
•Only commissions received on insurance sold as provided in this division are exempt.
•The rule applies to all negotiations, arrangements, or agreements connected with a loan.

Example

A loan officer pressures a borrower to buy an expensive insurance policy as part of getting a loan and receives a kickback for it.

The kickback is considered an illegal charge under this rule because it is a profit obtained through the loan arrangement, even though it is not a standard insurance commission.

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

Official Source

View on CA.gov

§ 18008 Loan Charges Profit Prohibition

“Charges” also include any profit or advantage of any kind that any person may contract for, collect, receive, or in any manner obtain by a collateral sale, purchase, or agreement, in connection with the negotiating, arranging, making, or otherwise in connection with any loan, except commissions received on insurance sold as provided in this division. (Added by Stats. 1976, Ch. 964.)

Last verified: January 11, 2026

Key Terms

Charges collateral sale loan commissions received on insurance

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 18008.

§ 18008 Loan Charges Profit Prohibition

Financial Code·California

AI SummaryVerified

§ 18008 Loan Charges Profit Prohibition

This law says that any extra profit or advantage you get from a loan—like fees from selling something tied to the loan—counts as a charge, except for regular insurance commissions.

Key Takeaways

•Any profit or advantage from a loan, such as fees from a collateral sale or purchase, is treated as a charge.
•Only commissions received on insurance sold as provided in this division are exempt.
•The rule applies to all negotiations, arrangements, or agreements connected with a loan.

Example

A loan officer pressures a borrower to buy an expensive insurance policy as part of getting a loan and receives a kickback for it.

The kickback is considered an illegal charge under this rule because it is a profit obtained through the loan arrangement, even though it is not a standard insurance commission.

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

Official Source

View on CA.gov

§ 18008 Loan Charges Profit Prohibition

Last verified: January 11, 2026

Key Terms

Charges collateral sale loan commissions received on insurance

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 18008.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References