Tag: California Payday Loan Proposed Rulemaking by DOB

13
Mar

California Payday Loan Proposed Rulemaking by DOB

By: Admin at Trihouse Payday Loan Consulting: The STATE OF CALIFORNIA – DEPARTMENT OF BUSINESS OVERSIGHT is seeking consumer and industry comments on proposed rulemaking relevant to the California payday loan industry. The California DOB is accepting comments until May 6th. It’s critical that our industry provide insight regarding the impact and acceptance of these proposed rule changes. Our “haters” have been very active!

INVITATION FOR COMMENTS ON PROPOSED RULEMAKING UNDER THE CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW

[NOTE: This was brought to my attention by the law offices of San Francisco based Paul Soter. Paul specializes in providing legal counsel for lenders in Calif.]

BACKGROUND

The Department licenses and regulates deferred deposit originators, more commonly known as payday lenders, under the California Deferred Deposit Transaction Law (Financial Code section 23000 et seq.). The Department is considering various changes to the regulations under the California Deferred Deposit Transaction Law and prior to initiating formal rulemaking, recently sought comments on these changes from  interested parties [see Invitation for Comments on Proposed Rulemaking Under the California Deferred Deposit Transaction Law (PRO 04-08), dated May 29, 2013].

Among other things, the potential changes would authorize a licensee to use electronic fund transfers and prepaid debit cards offered by licensees to provide the funds from transactions to customers and to collect payments from them, but would not permit a licensee to use a customer’s debit card, prepaid debit card or credit card in conjunction with a deferred deposit transaction.

QUESTIONS UNDER CONSIDERATION

The Department received a number of written comments on the proposed changes. Some of the comments have offered insights that may suggest the need for further consideration and therefore the Department is requesting additional information. The Department is also seeking specific information on the potential economic and cost impact to businesses and consumersContinue Reading..