Search Results: California Department of Business Oversight

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

On 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…

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

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 products were akin to lending, but were illegal loans because the lender did not have the…

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California DBO Announces Settlement with Point-of-Sale Lender Over Allegedly Illegal Loans

On March 15, 2020, the California Department of Business Oversight (DBO) announced a settlement with a point-of-sale lender that offered an allegedly illegal “buy now, pay later” option targeted to young consumers. After an investigation, DBO concluded that these loans were illegal because the lender did not have the requisite…

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CA DBO Settles with Mortgage Servicer Over Alleged Failure to Pay Escrow Interest

​On June 18, 2019, the California Department of Business Oversight (DBO) announced that it entered into a ​settlement and consent order with a mortgage servicer over an alleged failure to pay interest on ​escrow impound accounts for 94,483​ residential mortgage loans.​  Servicers are required to pay interest on such accounts under…

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

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, Fin. Code Section 22000 et seq. Per the consent order, the payday lender allegedly steered borrowers into loans…

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California DBO Enters Into $1.4 Million Consent Order With Mortgage Lender Over Interest Charges

On April 10, 2017, the California Department of Business Oversight (DBO) announced​ that it had entered into a consent order with a Michigan-based residential mortgage lender and servicer over allegations that the firm was overcharging consumers for interest on a number of loans. The DBO brought an enforcement action against the…

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Mortgage Servicer Enters in to $225 Million Consent Order with California DBO

On February 17, 2017, the California Department of Business Oversight (California DBO) announced that it had entered in to a $225 million consent order with a national mortgage servicer following an investigation by a third-party auditor into loans serviced by the company in California between January 1, 2012 and June 30, 2015.  The servicer had agreed to the audit…

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CFPB and California DBO Settle with Online Lender Over Alleged Misrepresentations

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 (DBO), over allegations that the lender deceptively marketed its loan products and hid the true cost of credit…

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California Department of Business Oversight Launches Inquiry Into Online Lending

​On December 11, the California Department of Business Oversight (DBO) announced that it had launched an inquiry into the online lending industry, known as “marketplace lending.”  The DBO requested a wide array information from fourteen marketplace lenders, including a five-year trend data about their loan and investor funding programs, and…

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California Department of Business Oversight Announces $10.1 Million Settlement with Mortgage Company Over Improper Fees

On November 19, 2015, the California Department of Business Oversight (DBO) announced that it had reached a settlement with a national mortgage company over allegations the company overcharged customers for mortgage settlement services. The company allegedly charged consumers a $200 settlement service fee in connection with mortgage loans. The fee…

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National Finance Company to Pay Approximately $1 Million in Restitution Over Alleged Predatory Lending Practices

On November 18, 2015, California’s Department of Business Oversight (DBO) announced that a national finance company paid approximately $1 million in restitution to California consumers as part of a prior settlement with the DBO​ related to company’s lending practices. Enforcement Watch previously covered the settlement​, in which the the company agreed to pay $125 per consumer…

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CA Department of Business Oversight Sues Debt Repayment Service for Alleged Excessive Fees and Unlicensed Operations

On Friday, May 15, 2015, the California Department of Business Oversight (DBO) announced that it filed a complaint in state court against an Ohio-based biweekly debt repayment firm and allegedly associated entities (collectively “Defendants”) claiming certain violations of licensing, fee, and consumer protection provisions of California’s Financial Code and Business & Professions…

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California Department of Business Oversight Reaches $1 Million Settlement with Payday Lender for Deceptive Marketing

On February 5, 2015, the California Department of Business Oversight announced that it reached a settlement with a payday lending company over allegations that the company used deceptive sales pitches to market payday loans in violation of the California Lenders Law. The company purportedly structured loans in a way that…

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California Department of Business Oversight Reaches $2.5 Million Settlement with Mortgage Lender for Failure to Report Loan Information

On January 23, 2015, the California Department of Business Oversight (“CBO”) announced that it reached a settlement with a national mortgage lender over allegations that the lender failed to comply with state recordkeeping requirements to assess compliance with state mortgage lending laws. The CBO claims that the mortgage lender repeatedly…

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