News & Analysis as of

Consumer Lenders Department of Business Oversight

Allen Matkins

A Rash Of License Impersonators?

Allen Matkins on

In the last several weeks, California's Department of Financial Protection and Innovation (fka the Department of Business Oversight) has issued a number of consumer alerts involving companies fraudulently claiming to hold a...more

Ballard Spahr LLP

California Dept. of Business Oversight launches “true lender” investigation of auto title lender’s partnership with Utah bank

Ballard Spahr LLP on

On September 3, 2020, the California Department of Business Oversight (DBO) announced that it has launched a formal investigation into whether Wheels Financial Group, LLC d/b/a LoanMart, formerly one of California’s largest...more

Goodwin

California Department of Business Oversight Announces Settlement with Point-of-Sale Lender Over Allegedly Illegal Loans

Goodwin on

On April 22, 2020, the California Department of Business Oversight (DBO) announced a settlement with a point-of-sale lender that offered consumers a “buy now, pay later” option for payment. ?The DBO alleged that these...more

Allen Matkins

DBO Expansion Plans To Be Aired On April Fools' Day

Allen Matkins on

California's Governor Gavin Newsom has big plans for the Department of Business Oversight.  These plans were described in his proposed 2020-2021 budget as follows...more

Morgan Lewis

Watch Out for California – State Stepping Up Fintech and Lending Regulatory Enforcement

Morgan Lewis on

A recent legal conference in Washington, DC, highlighted newly proposed and ongoing regulatory changes in California concerning consumer and commercial lending. ...more

ArentFox Schiff

California’s ‘Mini-CFPB’—Gov. Newsom’s Budget Proposal Forecasts Significant Expansion of Consumer Financial Services Oversight...

ArentFox Schiff on

California is poised to join the growing cadre of states enhancing their consumer financial protection functions in response to perceived decreasing federal oversight and enforcement under the Trump administration. Following...more

White & Case LLP

Key Regulatory Developments Impacting the California Lending and Payments Space

White & Case LLP on

The State of California is home to almost 40 million consumers and the world’s fifth largest economy. It represents a key exposure to most financial services companies’ US footprint. In recent years nonbank financial services...more

Goodwin

California and New York Propose to Expand Consumer Protections

Goodwin on

At the start of the new year, both California’s Governor Newson and New York’s Governor Cuomo proposed expansions to their respective state’s regulatory oversight of consumer financial services. Of particular note,...more

Ballard Spahr LLP

CA DBO concludes certain point-of-sale financing arrangements are loans, not credit sales

Ballard Spahr LLP on

On December 30, 2019, the California Department of Business Oversight (DBO) announced two actions regarding companies offering unregulated, point-of-sale financing to California residents.  In the first action,  the DBO...more

Allen Matkins

Department Of Business Oversight Takes Aim At Point-Of-Sale Transactions

Allen Matkins on

Late last month, the California Department of Business Oversight took the unusual step of issuing a press release announcing that it had denied an application by Sezzle Inc. for a lender's license under the California...more

Morrison & Foerster LLP

The DBO Notifies CFL Lenders Of New Rate And Other Limitations Imposed By AB 539

Morrison & Foerster LLP on

The California Department of Business Oversight (DBO) has issued a Release that summarizes the provisions of California Assembly Bill 539 and addresses some implementation issues. This bill was chaptered as Chapter 708 of the...more

Manatt, Phelps & Phillips, LLP

California Regulator: Lenders Moving Away From Small-Dollar Loans to High-Interest Installment Loans

California nonbank consumer lenders are moving away from small-dollar short-term payday loans and are, instead, embracing longer-term installment loans with amounts over $2,500 to avoid interest rate caps, according to the...more

Allen Matkins

DBO Reports Record Number Of CFL Licensees

Allen Matkins on

California prohibits any person (unless exempt) from engaging in the business of a finance lender or broker without obtaining a license from the Commissioner of Business Oversight. Cal. Fin. Code § 22100(a). This applies to...more

Ballard Spahr LLP

CA Dept. of Business Oversight files action against title lender for CA law violations; launches investigation into whether...

Ballard Spahr LLP on

The California Department of Business Oversight (DBO) has filed an administrative enforcement action against a title lender for alleged violations of California law and launched an investigation into whether the interest...more

Allen Matkins

Commissioner Issues Annual Securities Report

Allen Matkins on

The California Commissioner of Business Oversight is require to prepare an annual report summarizing the data collected from issuers that were granted permits to offer and sell securities pursuant to Corporations Code §...more

Allen Matkins

Borrower Seeks To Void Notes Because Lender Was Not Licensed Under The CFL

Allen Matkins on

The California Financing Law (fka Finance Lenders Law) prohibits anyone from engaging in the business of a finance lender without obtaining a license from the California Commissioner of Business Oversight (unless exempt). ...more

Goodwin

California Department of Business Oversight Enters Into $900,000 Consent Order With Payday Lender

Goodwin on

On January 22, 2019, the California Department of Business Oversight (DBO) announced that it had entered into a consent order with a payday lender to resolve allegations that the company violated the California Financing Law,...more

Allen Matkins

Court Of Appeal Shows No Deference To The DBO

Allen Matkins on

For U.S. Supreme Court followers, a hot topic is whether the Court will continue to apply "Chevron deference". Under Chevron U.S.A., Inc. v. Natural Resources Defense Council, 467 U.S. 837 (1984), a court will uphold an...more

Allen Matkins

California Supreme Court Empowers The DBO And The Courts To Regulate Interest Rates

Allen Matkins on

Section 22303 of the California Financial Code establishes the maximum interest rates applicable to loans less than $2,500. The preceding section incorporates by reference the general Civil Code provision about contract...more

Ballard Spahr LLP

California Department of Business Oversight Issues Warning to Lenders and Servicers Who Fail to File Mandatory Reports

Ballard Spahr LLP on

On June 29, 2018, the California Commissioner of Business Oversight warned California residential mortgage lenders and servicers that their failure to file annual reports could lead to enforcement actions. ...more

Manatt, Phelps & Phillips, LLP

Installment Consumer Lending Falls in California, DBO Reports

The California Department of Business Oversight (DBO) released a pair of reports on installment consumer lending for 2017, finding that the combined dollar amount of installment consumer loans by nonbanks in the state fell...more

Bradley Arant Boult Cummings LLP

CFPB Sends Clear Message That FinTech Start-Ups Have Same Obligations as Established Companies

In a clear message to FinTech start-ups, on September 27, 2016, the Consumer Financial Protection Bureau (CFPB) ordered online lender Flurish, Inc. to pay $1.83 million in refunds and a civil penalty of $1.8 million for...more

Goodwin

CFPB and California DBO Settle with Online Lender Over Alleged Misrepresentations

Goodwin on

On September 27, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with an online lender, after a joint investigation with the California Department of Business Oversight...more

Manatt, Phelps & Phillips, LLP

California DBO Reports on Jump in Nonbank Installment Consumer Lending

According to a new report from the California Department of Business Oversight (DBO), installment consumer lending by nonbanks grew almost 50 percent in 2015, with the majority of loans between $2,500 and $5,000 featuring an...more

Manatt, Phelps & Phillips, LLP

California DBO Reports on Marketplace Lending Inquiry

The results are in from the California Department of Business Oversight's (DBO) investigation into online marketplace lending....more

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