California Lenders: New Calif. Department of Business Oversight Survey & Developments

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

Comments ( 4 )
  • Lawyer says:

    I read this post completely and I’m in total agreement. It’s a remarkable article.

  • Carl S says:

    These are the two I like best:

    • 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.

    • Use of Independent Agents for Loan Referrals: Information on use and licensing status of such agents.

    Why would the state of CA think that this information is available to the average Joe cash advance store owner? And why do they think a LG would be willing to take the time to compile this info for them. And what F__king business is it of theirs anyway?

    Part of the service we provide is PRIVACY.

    Also, what about self incrimination? Or is that out the window if you’re licensed to provide short term loans?

    It’s really a shame that here in Michigan, none of the cash advance stores talk to each other. No association, no lobby, no nothing. Many of the laws here were obviously written by stupid people, not FOR stupid people.

    I just got audited again so I’m a little miffed right now. Can you tell?

    I’ve now been audited twice and I’ve only been in business for 2 1/2 years. Every little typo is a violation even if it was corrected immediately.

    If government was held to the same standards we’d all be in clover for the rest of our days …

    Carl S

    • Payday Loan Industry says:

      Carl, Steve Davies at The Yorkshire Post put it like this, “If you want to help real loan sharks and low-life money lenders then restricting legitimate lenders is the way to go.” (This is a good read!)

      State associations and support groups take a great deal of effort. Someone like yourself has to get the ball rolling. Michael Brown (TX) and Max Wood (AL) are two guys you should reach out to. They know how to get a grass roots association started.

      Regarding Calif., I think they’re preparing to “bring down the hammer.” They want to force lenders to assemble this info. The lenders will put “heat” on their LMS providers to enable this info to be collected. Eventually,a state data base will be implemented; and worse.

      Best Wishes, Man!!
      Jer – Trihouse

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