On August 4, the California DFPI entered into a consent order with a Texas-based commercial financing company for alleged violations of the California Financing Law (CFL) and state usury limits. The department alleged that the company, without holding a finance lender license, entered into 18 equipment finance loans and four additional commercial loans with California entities from at least 2022 through 2025 in violation of California Financial Code section 22100. The DFPI further alleged that the loans failed to provide required commercial financing disclosures, including the total cost of financing expressed as an annualized rate. In addition, the department alleged that charges on the 18 equipment finance loans exceeded the 10 percent annual interest permitted under Article XV, Section 1 of the California Constitution.

Under the consent order, the company agreed to desist and refrain from violating the CFL, pay a $44,000 penalty, and provide an estimated $88,958.75 in credits to the 18 affected California entities that entered into the equipment finance loans. For current accounts, the company must credit all amounts collected in excess of the 10 percent annual interest rate limit and re-amortize the account accordingly. For delinquent or defaulted accounts, the company must apply those excess amounts as credits against the outstanding balance. The company also agreed to pay $2,500 in investigative costs. In return, the DFPI agreed to complete its review of the company’s pending license application and not use the consent order as the sole basis for denying the application. The company neither admitted nor denied the findings.