See my article on DeBanked titled, “California Finance Lenders Law Licensing Compliance for Merchant Cash Advance Financiers.”
Similarly, secured and unsecured commercial and consumer lenders, who lend to California borrowers, should also comply with the California finance lenders licensing laws and regulations. Consumer lenders should also comply with state and federal consumer lending and financial laws.
The Department of Business Oversight routinely conducts inspections of licensees and may revoke or suspend licenses for none-compliance. In case an Accusation for revocation of a finance lenders license is filed against the licensee, the licensee should timely request a hearing, so it can defend itself before the Administrative Law Judge and/or attempt to obtain a settlement with DBO. The administrative hearing takes place at the Office of Administrative Hearings and its procedural rules are substantially similar (with some differences) to a California Superior Court’s bench trial. (non-jury trial)
It is important to not only obtain the California Finance Lenders Law license, but to also comply with the California finance lenders law and federal financial laws in order to keep the license.Share