Consumer Loan Law and Legal Definition
Consumer loan means a secured or unsecured loan given to customers for personal, family, or household purposes, or for consumable items such as a car, boat, manufactured home, home equity loan, home equity line of credit, signature loan, signature line of credit, and recreational vehicle. It is usually given on the basis of borrower's integrity and ability to pay. It is also called as consumer lending, consumer credit, or retail lending.
Consumer loans must comply with the consumer protection regulation and they are monitored by government regulatory agencies. Consumer loan does not include mortgage loans used for home purchases and commercial loans.
The term “consumer loan” is defined under Cal Fin Code § 4970 (d) as a consumer credit transaction that is secured by real property located in this state, used or intended to be used or occupied, as the principal dwelling of the consumer that is improved by a one-to-four residential unit. "Consumer loan" does not include a reverse mortgage, an open line of credit, or a consumer credit transaction that is secured by rental property or second homes. "Consumer loan" does not include a bridge loan. For purposes of this division, a bridge loan is any temporary loan, having a maturity of one year or less, for the purpose of acquisition or construction of a dwelling intended to become the consumer's principal dwelling.
Legal Definition list
Related Legal Terms
- Acquisition and Improvement Loan [Veterans' Relief]
- Acquisition Loan [HUD]
- Acquisition, Development and Construction (ADC) Loan
- Adjustable Rate Mortgage Loan
- Administrative Cost of Issuing a Loan Guarantee
- Air Loan
- Allowance for Loan and Lease Losses
- Amortized Loan
- Anticounterfeiting Consumer Protection Act
- Anticybersquatting Consumer Protection Act