§ 22603 Referral Fee Disclosure Requirement

Financial Code·California

AI SummaryVerified

Key Takeaways

•If someone who doesn't have a license sends you to a money lender for a business loan, the lender must give you a special paper to read and sign.
•The paper must say who sent you to the lender and that the lender might pay that person for sending you.
•The paper must also say that only the lender can give you the loan, not the person who sent you.
•If you have a problem with the loan, you can call or go online to tell the government about it.

Example

Your friend tells you about a place to get a loan for your lemonade stand. You go to the lender, and they give you a paper to read and sign.

The paper says your friend sent you, the lender might pay your friend, and only the lender can give you the loan. It also tells you who to call if you have a problem with the loan.

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

Official Source

View on CA.gov

§ 22603 Referral Fee Disclosure Requirement

A licensee that is a finance lender shall provide a prospective borrower who has been referred by an unlicensed person the following written statement, in 10-point font or larger, at the time the licensee receives an application for a commercial loan, and shall require the prospective borrower to acknowledge receipt of the statement in writing: “You have been referred to us by [Name of Unlicensed Person]. If you are approved for the loan, we may pay a fee to [Name of Unlicensed Person] for the successful referral. [Licensee], and not [Name of Unlicensed Person] is the sole party authorized to offer a loan to you. You should ensure that you understand any loan offer we may extend to you before agreeing to the loan terms. If you wish to report a complaint about this loan transaction, you may contact the Department of Financial Protection and Innovation at 1-866-ASK-CORP (1-866-275-2677), or file your complaint online at www.dfpi.ca.gov. (Amended by Stats. 2022, Ch. 452, Sec. 140. (SB 1498) Effective January 1, 2023.)

Last verified: January 23, 2026

Key Terms

finance lender prospective borrower unlicensed person written statement commercial loan Department of Financial Protection and Innovation

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 22603.

§ 22603 Referral Fee Disclosure Requirement

Financial Code·California

AI SummaryVerified

§ 22603 Referral Fee Disclosure Requirement

Key Takeaways

•If someone who doesn't have a license sends you to a money lender for a business loan, the lender must give you a special paper to read and sign.
•The paper must say who sent you to the lender and that the lender might pay that person for sending you.
•The paper must also say that only the lender can give you the loan, not the person who sent you.
•If you have a problem with the loan, you can call or go online to tell the government about it.

Example

Your friend tells you about a place to get a loan for your lemonade stand. You go to the lender, and they give you a paper to read and sign.

The paper says your friend sent you, the lender might pay your friend, and only the lender can give you the loan. It also tells you who to call if you have a problem with the loan.

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

Official Source

View on CA.gov

§ 22603 Referral Fee Disclosure Requirement

Last verified: January 23, 2026

Key Terms

finance lender prospective borrower unlicensed person written statement commercial loan Department of Financial Protection and Innovation

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 22603.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References