California Department of Business Oversight Investigates Auto Title Lender For Possible Usury


GoodwinOn September 3, 2020, the California Department of Business Oversight (“DBO”) announced it had initiated an investigation into an auto title lender for possible violations of California’s state usury limits, through its relationship with an out-of-state bank.

In 2020, the Company allegedly stopped making state-licensed auto loans in California and instead partnered with a Utah-chartered bank that originated the loans for the company to service.  On September 3, the DBO served a subpoena on the company regarding its partnership with the Utah bank in order to investigate whether these new loans should be subject to California’s usury laws.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Goodwin | Attorney Advertising

Written by:


Goodwin on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.