SECTIONS 1840-1846 - California Statutes

FINANCIAL CODE

SECTION 1840-1846

1840. (a) (1) Each licensee shall file with the commissioner a
certified copy of every receipt form used by it or by its agent for
receiving money for transmission prior to its first use. No licensee
or its agent shall use any receipt, a certified copy of which has not
been filed with the commissioner, or use a receipt that the
commissioner has deemed not to be in compliance pursuant to paragraph
(2).
(2) If the commissioner determines, within 30 business days of the
filing date of a receipt, that the receipt does not comply with the
requirements of this section or Sections 1842 and 1843, the
commissioner shall notify the licensee in writing that the receipt is
not in compliance with those requirements.
(b) Notwithstanding subdivision (a), before a new licensee issues
its first receipt to a customer, it shall file with the commissioner
a certified copy of the receipt forms to be used by it or its agents
for receiving money for transmission. The new licensee shall not use
the receipt forms until approved by the commissioner. For purposes of
this subdivision, a new licensee is a licensee that has not been
previously licensed by the commissioner as a money transmitter or has
not previously received money for transmission in California.
(c) If a receipt is required by this chapter to be in English and
another language, the English version of the receipt shall govern any
dispute concerning the terms of the receipt. However, any
discrepancies between the English version and any other version due
to the translation of the receipt from English to another language
including errors or ambiguities shall be construed against the
licensee or its agent and the licensee or its agent shall be liable
for any damages caused by these discrepancies.
(d) Any licensee violating the requirements of this section shall
be subject to a fine of fifty dollars ($50) for each violation. This
provision is in addition to any other enforcement provisions that may
apply to such a violation.
(e) If any licensee or its agent uses a receipt form, a certified
copy of which has not been filed with the commissioner, the licensee
shall be liable for the acts of its agent whether or not the licensee
authorized the agent to use that form.
(f) The receipt form shall comply with the requirements of
Sections 1842 and 1843.

1841. Every licensee or its agent shall forward all money received
for transmission or give instructions committing equivalent money to
the person designated by the customer within 10 days after receiving
that money, unless otherwise ordered by his or her customer.

1842. (a) Every licensee or its agent shall refund to the customer
within 10 days of receipt of the customer's written request for a
refund any and all money received for transmission unless any of the
following occurs:
(1) The money has been forwarded within 10 days of the date of
receipt.
(2) Instructions have been given committing an equivalent amount
of money to the person designated by the customer within 10 days of
the date of the receipt of the money from the customer.
(3) The customer instructs the licensee to transmit the money at a
time beyond 10 days. If the customer gives instructions as to when
the money shall be forwarded or transmitted and the moneys have not
yet been forwarded or transmitted, the licensee or its agent shall
refund the customer's money within 10 days of receipt of the customer'
s written request for a refund.
(4) Refund would violate law.
(b) In the case of money received for transmission, a receipt
shall be provided by a licensee or its agent to all customers which
shall be made available to the customer in English and in the
language principally used by that licensee or that agent to
advertise, solicit, or negotiate, either orally or in writing, at
that branch office if other than English. The receipt shall either
include or have attached a conspicuous statement in English and in
the language principally used by the licensee or that agent to
advertise, solicit, or negotiate, either orally or in writing at that
branch office if other than English in a size equal to at least 10
point bold type, as follows:

RIGHT TO REFUND
"You, the customer, are
entitled to a refund of
the money to be
transmitted as the
result of this
agreement if _____
(name of licensee) does
not forward the money
received from you
within 10 days of the
date of its receipt, or
does not give
instructions committing
an equivalent amount of
money to the person
designated by you
within 10 days of the
date of the receipt of
the funds from you
unless otherwise
instructed by you.
If your instructions as
to when the moneys
shall be forwarded or
transmitted are not
complied with and the
money has not yet been
forwarded or
transmitted, you have a
right to a refund
of your money.
If you want a refund,
you must mail or
deliver your written
request to _____ (name
of licensee) at _____
(mailing address of
licensee). If you do
not receive your
refund, you may be
entitled to your money
back plus a penalty of
up to $1,000 and
attorney's fees
pursuant to Section
1842 of the California
Financial Code."

(c) A cause of action under this section may be brought in small
claims court if it does not exceed the jurisdiction of that court, or
in any other appropriate court. The customer shall be entitled to
recover each of the following:
(1) Any and all money received for transmission, plus any fees and
charges paid by the customer.
(2) A penalty in an amount not to exceed one thousand dollars
($1,000). The court shall award the prevailing party costs and
attorney's fees.

1843. (a) The receipt presented to each customer for money received
for transmission pursuant to subdivision (b) of Section 1842 shall
clearly state the rate of exchange for the particular transaction, if
any, the amount of commission or fees, and the net exchange after
all fees and commissions have been deducted. The receipt shall also
state the total amount of money presented by the customer and the
total amount to be delivered to the beneficiary designated by the
customer. These disclosures shall be in English and in the same
language as that principally used by the licensee or any agent of the
licensee to advertise, solicit, or negotiate, either orally or in
writing, at that branch office if other than English.
(b) If window and exterior signs concerning the rates of exchange
for money received for transmission are used, they shall clearly
state in English and in the same language principally used by the
licensee or any agent of the licensee to advertise, solicit, or
negotiate, either orally or in writing, at that branch office if
other than English, the rate of exchange for exchanging the currency
of the United States for foreign currency. If an interior sign or any
advertising is used that quotes exchange rates, it shall, in
addition to clearly stating the rates of exchange for exchanging the
currency of the United States for foreign currency, also state all
commissions and fees charged on all such transactions.
(c) At each branch office, there shall be disclosed the exchange
rates, fees, and commissions charged in English and in the same
language principally used by the licensee or any agent of the
licensee to advertise, solicit, or negotiate, either orally or in
writing, with respect to money received for transmission at that
branch office. At each branch office, there shall be signage clearly
identifying the name of the licensee as well as any trade names used
by the licensee at that branch office.
(d) If the customer does not specify at the time the money is
presented to the licensee or its agent the country to which the money
is to be transmitted, the rate of exchange for the transaction is
not required to be set forth on the receipt. If the customer does
specify at the time the money is presented to the licensee or its
agent the country to which the money is to be transmitted but the
specified country's laws require the rate of exchange for the
transaction to be determined at the time the transaction is paid out
to the intended recipient, the rate of exchange for the transaction
is not required to be set forth on the receipt.

1844. Each licensee or agent shall prominently post on the premises
of each branch office that issues or sells payment instruments, and
at machines located in this state and operated by the licensee or
agent that issues or sells payment instruments, a notice clearly
stating that payment instruments are not insured by the federal
government, the state government, or any other public or private
entity. This notice shall be printed in English and in the same
language principally used by the licensee or any agent of the
licensee to advertise, solicit, or negotiate, either orally or in
writing, with respect to the purchase of payment instruments. The
information required in this notice shall be clear, legible, and in
letters not less than one-half inch in height. The notice shall be
posted in a conspicuous location in the unobstructed view of the
public within the premises. The licensee shall provide to each of its
agents the notice required by this section. In those locations
operated by an agent, the agent, not the licensee, shall be
responsible for the failure to properly post the required notice.

1845. (a) Each licensee or agent shall prominently post on the
premises of each branch office that conducts money transmission a
notice stating that:

"If you have complaints with
respect to any aspect of the
money transmission activities
conducted at this location,
you may contact the
California Department of
Financial Institutions at its
toll-free telephone number, 1-
800-622-0620, by e-mail at
[e-mail],
or by mail at Department of
Financial Institutions,
Consumer Services, 1810 13th
Street, Sacramento, CA 95811."

(b) The commissioner may by order or regulation modify the content
of the notice required by this section. This notice shall be printed
in English and in the same language principally used by the licensee
or any agent of the licensee to advertise, solicit, or negotiate
either orally or in writing, with respect to money transmission at
that branch office. The information required in this notice shall be
clear, legible, and in letters not less than one-half inch in height.
The notice shall be posted in a conspicuous location in the
unobstructed view of the public within the premises. The licensee
shall provide to each of its agents the notice required by this
section. In those locations operated by an agent, the agent, and not
the licensee, shall be responsible for the failure to properly post
the required notice.

1846. (a) No licensee shall sell or issue any form of payment
instrument in California unless a certified copy of the payment
instrument has first been filed with the commissioner. The payment
instrument shall clearly identify the licensee as the issuer.
(b) The commissioner may by order or regulation declare that a
form of payment instrument is prohibited if it is misleading in any
material respect or otherwise does not comply with applicable law.
(c) A payment instrument that identifies the agent through which
the licensee sells the payment instrument shall identify the agent as
such and shall identify the licensee at least as conspicuously as it
does the agent.