There are 11 states that have enacted some form of the Uniform Consumer Credit Code (UCCC), a model law that regulates all aspects of consumer credit — from advertising to collection. UCCCs include a licensing and/or notification requirement and, depending on the scope of activities engaged in, as well as available exemptions, some companies may be required to hold both a license and a notification under a UCCC.
The UCCC licensing requirement typically applies to persons who make supervised loans, or to persons who take assignment of and service or collect such loans. “Supervised loan” is generally defined as a consumer loan with an interest rate exceeding a specified percentage. In some states, there are separate UCCC licensing requirements for sales finance companies, debt collectors, loan brokers, and other financial services providers.
The UCCC notification requirement usually applies to persons who enter into consumer credit transactions in the state, or to persons who have an office or place of business in the state and take assignment of and service or collect such transactions. Notifications are often no more than a couple of pages and require the provision of items like company identifying and contact information, registered agent information, and a list of officers.
UCCC licenses and notifications require annual renewals, which usually involves paying a fee that is based on activity conducted during the previous year, as well as confirming company identifying and contact information.
For assistance with UCCC license and notification applications and renewals, be sure to check in with APPROVED.