California DBO Announces Its Presence with Authority: Respond to this Survey Now!

On June 26, 2013, the California Department of Business Oversight (which has absorbed the former Department of Corporations) sent out a 10-page survey to all CDDTL licensees requiring regarding CDDTL activity from Jan12 to May13. The Survey responses are due on July 24, 2013. Responses must be provided on-line: paper responses are not an acceptable alternative.

(NOTE: Our friend and top California “legal eagle” Paul Soter Esq. was kind enough to share this important California development with our readers.)

The survey calls for the following information requests:

• Multiple Transactions: Total number of customers obtaining multiple DDT’s (1-10) in 2012 and 2013.
• Customers’ Income: Customers’ income figures for same time period.
• Internet-Based Lending: Number of customers and DDT’s, and dollar amounts of internet DDT’s. Use of lead generators: Number of leads, fees paid, and customer data      provided by LG’s.
• Active Duty Military Customer Transactions: Number of customers and DDT’s, and dollar amounts of military DDT’s
• Funding Mechanisms: For loan proceeds: Number of customers and dollar amounts of loan disbursement broken down by cash, check, ACH or card credits for 2012        and 2013; For payments: Number and dollar amount of repayments broken down by cash, check, ACH or card credits for 2012 & 2013
• Collection Procedures: Payment Plans: Number offered and made for 2012 and 2013 Collections: In-house and outside practices
• Customer Complaints: Existence of complaint process, number of complaints and resolutions
• Use of Independent Agents for Loan Referrals: Information on use and licensing status of such agents.

Based on inquiries received by the trade association and industry attorneys, it appears that many CDDTL licensees do not have all this data easily retrievable or may need significant database query programming to obtain some of the information requested. CFSP’s efforts to obtain relief in the form of a delay or rethinking of the survey have been unsuccessful. Instead, the DBO has directed licensees who have timing or data assembly issues to contact the DBO individually.

The DBO has stated that it will consider granting extensions on a case-by-case basis if the request is timely made prior to the July 24th due date. Requests for extension should be directed to Louise.Amegin@DBO.ca.gov. Licensees requesting an extension should be prepared to explain specifically why they are unable to meet the July 24th due date. If a request for extension is granted, it will only be until August 23rd, 2013. No further extensions will be granted.

Licensees who are having difficulty with the survey form can obtain technical assistance by contacting survey@dbo.ca.gov. Any questions concerning the Survey’s content may be directed to CDDTL Special Administrator Frankie Hornick at Frankie.Hornick@dbo.ca.gov.

Licensees are urged to raise their concerns and questions to the DBO as soon as possible. The DBO is somewhat skeptical of the industry’s claims of hardship, so they need to hear from you.

Paul Soter
Law Offices of Paul Soter
149 San Felipe Avenue
San Francisco, CA 94127
Tel: (415) 333-3193
Cell: (415) 867-9484
http://www.lawofficesofpaulsoter.com/
psoter@sonic.net