On December 16, 2019, the California Department of Business Oversight (DBO) announced that it had entered into a consent order and settlement with an auto title lender to resolve allegations that the company violated the California Financing Law, Fin. Code Section 22000 et seq.
Per the settlement, the auto title lender allegedly charged borrowers excessive interest rates and fees, including through false and misleading statements to consumers. The DBO also alleged that the lender submitted false reports to the DBO during an earlier examination.
Under the terms of the consent order and settlement, the auto title lender will pay a fine of $25,000, refund approximately $700,000 to California borrowers, and cease originating auto title loans in California, only servicing its existing loans in the state.