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A California borrower proves a willful and knowing covered-loan violation. Which recovery does Financial Code section 4978 provide?

Correct Answer

B) Actual damages or $15,000, whichever is greater, plus attorney fees and costs

For willful and knowing covered-loan violations, Financial Code section 4978 provides actual damages or $15,000, whichever is greater, plus attorney fees and costs.

Answer Options
A
Only the excess fee charged
B
Actual damages or $15,000, whichever is greater, plus attorney fees and costs
C
Triple damages only, with no attorney fees
D
No private recovery once the loan closes

Why This Is the Correct Answer

For willful and knowing covered-loan violations, Financial Code section 4978 provides actual damages or $15,000, whichever is greater, plus attorney fees and costs.

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