CFSP Commends CA Dept. of Business Oversight Efforts to Protect Consumers by Cracking Down on Illegal, Unlicensed Online Lending
SACRAMENTO, CA (October 10, 2013) – The members of the California Financial Service Providers Association (CFSP) commend the California Department of Business Oversight’s (DBO) ongoing fight to “stop illegal unlicensed online payday lending”, including its latest effort to prevent these illegal transactions from going through legitimate bank and credit union channels.
“California consumers deserve the security of knowing their important credit transactions are conducted under a clear set of state regulations so they have recourse if something goes wrong,” said Natasha Fooman, President of CFSP and Vice President of Government Affairs, Advance America. “We fully support the Department’s and the Commissioner's efforts to crack down on unlicensed and unregulated lending on the Internet where consumers often have no protection, pay higher fees and risk unknown collection practices.”
Commissioner Jan Lynn Owen has instructed banks and credit unions that are licensed by the DBO to “monitor transactions with any unlicensed lender and immediately report potential violations.” The Commissioner’s letter to banks and credit unions can found at http://www.dbo.ca.gov/Resources/licensee_resources/Letter_to_Banks_and_CUs_-_Payday.pdf
“Our industry believes consumers benefit from having as many legitimate choices as possible when they need financial services including short term credit,” added Fooman. “It is important those options are state regulated so consumers are protected from unscrupulous and potentially dangerous practices.”
CFSP represents California businesses that offer state regulated check cashing, consumer credit including payday lending, and other financial services. The association and its members urge consumers who believe they may have been victimized by an unlicensed lender to contact Department of Business Oversight at http://www.dbo.ca.gov/Consumers/consumer_services.asp.