California Business and Professions Code § 654.3

(a) For purposes of this section, the following definitions shall apply: (1) “Arrange for” and “establish” mean the act of a licensee, or an employee or agent of that licensee, receiving application information from the applicant and submitting it to the lender for approval or rejection. (2) “Deferred interest provision” means a contractual provision that allows for interest to be charged on portions of the original balance that have already been paid off. (3) “Licensee” means an individual, firm, partnership, association, corporation, limited liability company, or cooperative association licensed under this division or under any initiative act or division referred to in this division. (4) “Licensee’s office” means either of the following: (A) An office of a licensee in solo practice. (B) An office in which services or goods are personally provided by the licensee or by employees in that office, or personally by independent contractors in that office, in accordance with law. Employees and independent contractors shall be licensed or certified when licensure or certification is required by law. (5) “Open-end credit” means credit extended by a creditor under a plan in which the creditor reasonably contemplates repeated transactions, the creditor may impose a finance charge from time to time on an outstanding unpaid balance, and the amount of credit that may be extended to the debtor during the term of the plan, up to any limit set by the creditor, is generally made available to the extent that any outstanding balance is repaid. (6) (A) “Patient” includes, but is not limited to, the patient’s parent or other legal representative. (B) In veterinary medical settings, “patient” means one of the following, as indicated by context: (i) If the patient is receiving the services, the owned animal of a client. (ii) If the patient is agreeing to or paying for services, the client owner of an animal patient. (b) (1) It is unlawful for a licensee, or employee or agent of that licensee, to arrange for or establish an open-end credit or loan that contains a deferred interest provision. (2) This subdivision shall not be construed as prohibiting a licensee, or employee or agent of a licensee, from doing any of the following: (A) Charging treatment or costs to an open-end credit or loan that is lawfully extended by a third party, including those that contain deferred interest provisions. (B) Arranging for or establishing an open-end credit or loan that does any of the following: (i) Offers a promotional period during which a debtor may avoid the payment of interest in connection with an open-end credit plan. (ii) At the end of a promotional period, charges interest on any unpaid balance remaining at that time. (iii) Imposes a late fee on a debtor who fails to pay the minimum amount due during any payment period. (c) (1) It is unlawful for a licensee, or employee or agent of that licensee, to charge treatment or costs to an open-end credit or loan, that is extended by a third party and that is arranged for, or established in, that licensee’s office, more than 30 days before the date upon which the treatment is rendered or costs are incurred. (2) This subdivision does not apply to orthodontic treatment provided by a licensed dentist who may charge incremental fees throughout the course of treatment. (d) It is unlawful for a licensee, or employee or agent of that licensee, to charge treatment or costs to an open-end credit or loan that is extended by a third party and that is arranged for, or established in, that licensee’s office without first providing the patient with a treatment plan, as required by subdivision (h), and a list of which treatment and services are being charged in advance of rendering treatment or incurring costs. (e) It is unlawful for a licensee, or employee or agent of a licensee, to complete any portion of an application for credit or a loan extended by a third party for the patient or o

‹ Prev All California sections Next ›

Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.