On October 17, the California DFPI issued a consent order against a company and fined it over $1 million for allegedly charging consumers fees and interest exceeding the allowable limits. Sections 22304.5 and 22306 of the California Financing Law limit the allowable interest rate and origination fee (i.e., administrative fee) on loans between $2,500 and $10,000. The DFPI determined that the company had violated these limits as recently as January 2023.

As part of the resolution, the respondent agreed to pay a $1 million penalty and $5,500 toward the DFPI’s investigative costs. The DFPI noted that the company refunded $218,705.38 to borrowers for excessive charges. The consent order also required the respondent to cease further collection efforts on unlawful charges and to provide additional consumer relief, including vacating or amending judgments and ensuring that no consumer relief is conditioned on waiving legal rights. The respondent neither admitted nor denied the findings contained in the consent order.