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HomeFinancial CodeDiv. 20Ch. 5§ 50323 Licensee Order Hearing Rights

§ 50323 Licensee Order Hearing Rights

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

§ 50323 Licensee Order Hearing Rights

Key Takeaways

  • •If the government wants to stop a business from doing something wrong, they must first tell the business why and give them a chance to fix it.
  • •The business can ask for a meeting within 30 days to explain their side. If they don’t ask, they must stop the bad behavior right away.
  • •If the business loses the meeting, they have 10 days to go to court to try to stop the order. If the court doesn’t help, they must follow the order.
  • •The business must stop the bad behavior immediately if they don’t ask for a meeting or if they lose in court.

Example

A bank is charging customers hidden fees that aren’t allowed by law.

The government tells the bank to stop and gives them a chance to explain why they did it. If the bank doesn’t ask for a meeting or loses the meeting, they have to stop the fees right away. If they don’t like the decision, they can go to court, but they only have 10 days to do it.

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

Official Source
View on CA.gov

§ 50323 Licensee Order Hearing Rights

(a) No order issued pursuant to Section 50321 or 50322 may become final except after notice to the affected licensee of the commissioner’s intention to make the order final and of the reasons for the finding. The commissioner shall also notify the licensee that upon receiving a request the matter will be set for hearing to commence within 15 business days after receipt. The licensee may consent to have the hearing commence at a later date. If no hearing is requested within 30 days after the mailing or service of the required notice, and none is ordered by the commissioner, the order may become final without hearing and the licensee shall immediately discontinue the practices named in the order. If a hearing is requested or ordered, it shall be held in accordance with the provisions of the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code), and the commissioner shall have all of the powers granted under that act. If, upon the hearing, it appears to the commissioner that the licensee is conducting or has conducted business in an unsafe and injurious manner or is violating or has violated its articles of incorporation or any law of this state, or any rule binding upon it, the commissioner shall make the order of discontinuance final and the licensee shall immediately discontinue the practices named in the order. (b) The licensee has 10 days after an order is made final to commence an action to restrain enforcement of the order. If the enforcement of the order is not enjoined within 10 days by the court in which the action is brought, the licensee shall comply with the order. (Amended by Stats. 2022, Ch. 188, Sec. 20. (AB 2433) Effective January 1, 2023.)

Last verified: January 23, 2026

Key Terms

enforcementcorporationcommissionhearinglicensecommenceadministrative procedure actintention

Related Statutes

  • § 28164 Licensee Order Hearing Rights
  • § 28160 Unlicensed Student Loan Servicing
  • § 28170 Student Loan Servicing Citations
  • § 31322 Licensee Head Office Relocation
  • § 4928 Bank Conversion Certification Authority

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 50323.
View Official Source