Financial Services Division
The Financial Services Division (FSD) is one of three operational divisions under the California Corporations Commissioner. FSD is headed by an Assistant Commissioner and is responsible for the regulation of six separate laws.
The laws under FSD's responsibility are:
- California Deferred Deposit Transaction Law (Payday Lenders)
- California Finance Lenders Law
- California Residential Mortgage Lending Act
- Check Sellers, Bill Payers and Proraters Law
- Escrow Law
FSD reviews applications for licensure under the laws and, if all requirements are met, companies receive a license. Once a company is licensed, it is included in the regulatory examination cycle for that industry.
FSD regulatory examination cycles vary from one year to four years and are conducted at the licensed location. Criteria has been established for each type of license in order to determine the company's compliance with laws and regulations and the financial stability of the business. Analysis of financial information is also performed by FSD to determine whether special examinations are required and to closely monitor problem companies. FSD may also conduct a regulatory examination for cause at any time.