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 Posted: Sun May 25, 2008 11:05 am Subject: HELP, Single Mom in CA
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I am in deep and I found this site by accident so I hope someone can help me. I live in CA and I have 6 internet loans that I need to get out of.I can no longer pay for the basics of living because of the mess I am in. I have listed the company, the amount borrowed/the amount paid so far.
ACC: $300/$817.50
Arrowhead: $300/$360
Eagle Finance: $300/$975
United Cash: $300/$975
500 Fast Cash: $300/$360
NLS: $300/$655
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bmblbe69
Joined: 25 May 2008
Posts: 80
Debtcc Points: 188
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Posted: Sun May 25, 2008 11:07 am Subject:
Latest Blog Post : Groceries....How to Save $$! |
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Hi bmblbe69 - welcome to the site!
Here is your state law regarding payday lending:
| Quote: | California State Information
Legal Status: Legal
Citation:
Cal. Fin. Code §§ 23000 to 23106
Loan Terms:
Maximum Loan Amount: $300
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: 15% of check
Finance Charge for 14-day $100 loan: $17.65
apr for 14-day $100 loan: 459%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: One
Rollovers Permitted: None (cannot charge fee for extension)
Cooling-off Period: None
Repayment Plan: Voluntary (no fees may be charged in conjunction with payment plan)
Collection Limits:
Collection Fees: $15 NSF fee
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: California Department of Corporations
Address: Financial Services Division, 1515 K Street, Suite 200 Sacramento CA 95814
Phone: (866) 275-2677 |
It looks like you have WAY overpaid on ALL of your loans. If you will hang tight on the line for a few, I will be back with licensing info on these lenders. I'm sure we'll be able to help you get out of this!!
_________________
A journey of a thousand miles begins with a single step...and becoming debt free is a journey!
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SUEBEEHONEY70
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Posted: Sun May 25, 2008 11:10 am Subject:
Latest Blog Post : Groceries....How to Save $$! |
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here's an interesting tidbit I found about the California Deferred Presentment Law (which means payday lenders):
| Quote: | The requirements for obtaining a license are as follows:
For each location, submit an application with the appropriate exhibits, an application fee of $200, an investigation fee of $100, and the assessment payment (if applicable). All fees and the assessment are non-refundable. An application on a short form established by the Commissioner may be submitted for each additional location that the applicant intends to engage in the business of deferred deposit transactions. Short form applications for each additional location, including mobile units, must include an application fee of $200, and an investigation fee of $100 and the assessment payment (if applicable).
Maintain a surety bond in the amount of $25,000 which must be in effect prior to the issuance of a license.
Submit financial statements prepared in accordance with Generally Accepted Accounting Principles that demonstrates that the applicant has a net worth of at least $25,000. After licensure, the licensee shall be required to maintain a net worth of at least $25,000 at all times.
The application must include fingerprint information submitted by live scan and the cost of fingerprint processing for the following:
The applicant;
The general partners, officers, directors and persons owning or controlling, directly or indirectly, 10% or more of the outstanding equity interests of the applicant; and
Other key persons involved, such as managers/members, trustees, any other officers with direct responsibility for the conduct of applicant's deferred deposit activity, and the persons who will be in charge of the place of business.
An application may be denied if any officer, director, general partner, or person owning or controlling, directly or indirectly, 10% or more of the outstanding interests or equity securities of the applicant has, within the last 10 years (A) been convicted of or pleaded nolo contendere to a crime, or (B) committed any act involving dishonesty, fraud, or deceit, if the crime or act is substantially related to the qualifications, functions, or duties of a person engaged in the business of deferred deposit transactions.
The following are some of the requirements a deferred deposit originator must comply with after the Department of Corporations issues a license:
Each year a licensee is required to pay an assessment for each licensed location. The assessment shall be the pro rata share of all costs and expenses reasonably incurred in the administration of the CDDTL. The assessment notices shall be mailed to each licensee on or before the 20th day of May each year and must be paid within 30 days. The failure to pay the assessment by the due date may result in penalties, and/or suspension or revocation of the license.
Licensees are subject to statutory books and record requirements. Each licensee shall keep and use books, accounts, and records that will enable the Commissioner to determine if the licensee is complying with the provisions of the CDDTL and with the rules and regulations promulgated by the Commissioner. Each licensee shall maintain any other records as required by the Commissioner.
The Commissioner may examine the business, books and records of the licensee any time, but not less than once every two years. The Commissioner's representatives shall have free access to the offices and places of business, books, accounts, papers, records, files, safes, and vaults of the licensee. The licensee shall pay the costs of the examination.
Licensee must maintain a surety bond at all times in the amount of $25,000. The bond shall be payable to the Commissioner and issued by an insurer authorized to do business in this state. For licensees with multiple licensed locations, only one surety bond in the amount of twenty-five thousand dollars ($25,000) is required. The bond shall be used for the recovery of expenses, fines, and fees levied by the Commissioner or for losses or damages incurred by consumers as the result of a licensee's noncompliance with the requirements of the CDDTL.
A licensee, regardless of the number of locations, must maintain a net worth of at least $25,000 at all times.
An advertisement disseminated primarily in California for a deferred deposit transaction, shall disclose in the printed text of the advertisement, or the oral text in the case of a radio or television advertisement, that the licensee is licensed by the Department of Corporations pursuant to the CDDTL. Licensees are required to maintain a file of all advertising copy for a period of 90 days from the date of its use. The file shall be available to the Commissioner upon request.
Every licensee shall post a complete, detailed, and unambiguous schedule of fees in a conspicuous location in the unobstructed view of the public within the licensee's location.
No licensee shall transact the business licensed or make any deferred deposit transactions under any other name or at any other place of business than that named in the license unless there is an order by the Commissioner authorizing the other name or other place of business.
Licensees are required to notify the Department of any change in location at least 10 days prior to the move. Failure to do so may subject the licensee to a civil penalty not to exceed $500.
The license, along with any orders approving a different name, shall be conspicuously posted in the place of business authorized by the license.
A license is not transferable or assignable. A licensee is required to notify the Department of any change of its officers, directors, or any persons named in the application within sixty days from the effective date of the change.
Licensees must file an annual report by March 15 of each year commencing on March 15, 2006. The licensee's annual report shall be kept confidential. The annual report shall include the following information for the previous calendar year:
The total number and dollar amount of deferred deposit transactions made by the licensee.
The total number of individual customers who entered into deferred deposit transactions.
The minimum, maximum, and average amount of deferred deposit transactions.
The average annual percentage rate of deferred deposits.
The average number of days of deferred deposit transactions.
The total number and dollar amount of returned checks.
The total number and dollar amount of checks recovered.
The total number and dollar amount of checks charged off.
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Based on that, I'd say your lenders are screwed - from the info above, I'd say your lenders would have a very hard time complying with all of those requirements, since they are internet based, and don't have a 'location', per se!
I'm still going to check the licensing database, just to be safe, so I'll be back soon.
_________________
A journey of a thousand miles begins with a single step...and becoming debt free is a journey!
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SUEBEEHONEY70
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Posts: 4390
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Posted: Sun May 25, 2008 11:18 am Subject:
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Thank you so much for taking the time to help me.
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bmblbe69
Joined: 25 May 2008
Posts: 80
Debtcc Points: 188
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Posted: Sun May 25, 2008 11:19 am Subject:
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Hi there,
I am also in California and just from looking at your lender list, I can tell you from personal experience that Arrowhead is NOT licensed in CA--but they will annoy you to death, I promise you. They mostly do it by letter, at least that's how they did me.
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kscornell
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Posts: 3629
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Posted: Sun May 25, 2008 11:27 am Subject:
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My main concern is if my employer finds out i will be fired, immediately. none of them have a corporate # for me but they could easily find it out. i guess thats why i keep paying.
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bmblbe69
Joined: 25 May 2008
Posts: 80
Debtcc Points: 188
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Posted: Sun May 25, 2008 11:30 am Subject:
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They will probably try to scare you and threaten you that they will call your boss, but do what I did: tell them in that case you'll be fired and nobody's getting paid. So why would they be stupid enough to do that, right? I would also tell your boss about this, if you can, since a great defense is a good offense. That way, you could say "they already know, thanks--they're waiting for your call, idiot!"
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kscornell
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Posted: Sun May 25, 2008 11:39 am Subject:
Latest Blog Post : Groceries....How to Save $$! |
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Here's what I found on your lenders, regarding licensing in California:
ACC: $300/$817.50
I cannot find a Deferred Presentment licensee with the name of "ACC" - but I did find one for "American Check Cashing & Tobacco". Was there another name for this lender?
No matter if they have another name or not, they are overcharging you for a $300 loan.
Your total, according to CA law, should have been $345 ($300 loan x 15% interest allowed = $345). You are owed a refund of $472.50.
Arrowhead: $300/$360
There is NO listing for a Deferred Presentment Provider in California named Arrowhead.
Your total, according to CA law, should have been $345 ($300 loan x 15% interest allowed = $345). You are owed a refund of $15.
Eagle Finance: $300/$975
There is NO listing for a Deferred Presentment Provider called Eagle Finance.
Again, your total, according to CA law, should have been $345 ($300 loan x 15% interest allowed = $345). You are owed a refund of $630.
United Cash: $300/$975
There is NO listing for a Deferred Presentment Provider called United Cash. There is, however, one called "United Cash-A-Check" - but they are a storefront. I'm assuming United Cash is the true name of your lender.
Your total, according to CA law, should have been $345 ($300 loan x 15% interest allowed = $345). You are owed a refund of $630.
500 Fast Cash: $300/$360
There is NO record of a Deferred Presentment Provider by the name of 500 Fast Cash or 500fastcash.
Your total, according to CA law, should have been $345 ($300 loan x 15% interest allowed = $345). You are owed a refund of $15.
NLS: $300/$655
There is NO listing of a Deferred Presentment Provider called NLS or N L S. (If you have a complete name for this company, that would be better, but it's quite likely they are unlicensed, based on what you've repaid them.)
Your total, according to CA law, should have been $345 ($300 loan x 15% interest allowed = $345). You are owed a refund of $310.
Keep in mind, most of these lenders have extended, rolled over, or renewed these loans for you more than once, judging by the amount you've paid them. That is prohibited by your state law.
NOW.....
There are several steps you need to take to get out of this.
-CLOSE YOUR BANK ACCOUNT. Or at the very least, get your bank to stop all ACH debits until you get these companies to stop debiting your account. Go to your bank, talk to the manager or account manager. Explain that you have gotten in over your head with payday loans, and you have discovered that all are operating illegally in your state. Therefore, any future debits to your account are unauthorized and should be stopped. Your bank manager will know the best way to handle this. Don't be embarrassed - they've seen this many times before, no doubt. But many people won't even know that their bank can help them, so they won't go talk to them. That's your starting point - do it immediately on Tuesday, when the banks reopen after the holiday. The manager will be able to help you decide whether you should close the account, or simply block ACH debits. Be cautious, however - some of these lenders are very sneaky, and have been known to try and slip through a fake "paper check" to get to your money if you block their debits - or they will change their company name and debit under another name. Sometimes the only option is to close your bank account so you can regain control of your money.
-WRITE LETTERS
Send letters to each lender stating the following:
-you are hereby revoking their authorization to debit your bank account
-you are revoking any possible wage assignment clause in their contracts
-you have overpaid them by (insert dollar amount here), according to Cal. Fin. Code §§ 23000 to 23106. Based upon that law, you are requesting a refund of the overpaid amount.
These letters need to be sent via Certified Mail, Return Receipt Requested. This will cost a bit of money (not a huge amount), but it's worth it - this provides you with proof that you mailed it, and proof that they received it, because they have to sign for it in order to receive it. If they refuse it, and it is returned to you, at least you have proof that you mailed it. Send a copy to their e-mail address as well.
It will be a bit of a battle, and will require effort on your part, but you CAN do this - and you'll be so much happier once you have control of your money once again!!
Please let us know if you have any further questions or need help with anything! And come back to update us on your progress - we look forward to hearing from you again!
_________________
A journey of a thousand miles begins with a single step...and becoming debt free is a journey!
Last edited by SUEBEEHONEY70 on Sun May 25, 2008 11:58 am |
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SUEBEEHONEY70
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Joined: 12 Oct 2006
Posts: 4390
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Posted: Sun May 25, 2008 11:55 am Subject:
Latest Blog Post : Groceries....How to Save $$! |
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If they don't have your work phone number, and don't know the name of your employer, I wouldn't worry about them calling you at work. It would be very difficult for them to find out that information.
If they are calling you at home, just ignore their calls. Don't bother picking up the phone and arguing with them - it won't get you anywhere. They will claim to be licensed in your state, that they're going to take you to court, they're going to arrest you, they're going to send their "LEGAL TEAM" after you, etc.
If you do decide to talk to them, call their bluff - tell them to go ahead and send their legal team - and you'll meet them on the courthouse steps with a legal team of your own - including the prosecuting attorney, state police, and your state's attorney general.
_________________
A journey of a thousand miles begins with a single step...and becoming debt free is a journey!
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SUEBEEHONEY70
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Posts: 4390
Debtcc Points: 61073
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Posted: Sun May 25, 2008 12:02 pm Subject:
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i have figured out from other posts here that NLS is Signmyloan.net.
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bmblbe69
Joined: 25 May 2008
Posts: 80
Debtcc Points: 188
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Posted: Sun May 25, 2008 12:14 pm Subject:
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i also found a cease & desist letter on here somewhere that was for NY but could i alter it to use in CA and use that as the letter you suggest i send?
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bmblbe69
Joined: 25 May 2008
Posts: 80
Debtcc Points: 188
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Posted: Sun May 25, 2008 12:50 pm Subject:
Latest Blog Post : Groceries....How to Save $$! |
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here's a link to the letter we have used in the past, created by Polly:
http://pollyandsay.yesdebtfree.org/template-letter/
Please take time to read the letter over before you send it out. You may choose to delete the part in the center of the letter about "dot com" companies, and just send the basic letter that revokes their ACH authorization, and requests a refund of the amount overpaid, and demands that your account be marked paid in full.
The main point is that you tell them the following:
-you're revoking their ACH debit authorization
-you're revoking any possible wage assignment clause that may exist (probably doesn't exist, but pays to cover this anyway)
-they have overpaid you by $xxx (insert amount here) according to your state law (and cite the law code as shown in my post above)
-they are not licensed to lend into California
-you want a refund of the overpayment
-you want your account marked paid in full
-you are making complaint to your state about their company
Follow those letters up with complaints to your state financial department at this link:
http://www.corp.ca.gov/about/complaint.asp
Also, I checked on Signmyloan.net - they are not licensed either.
And ACC is NOT American Check Cashing & Tobacco - so they are not licensed, either. [/quote]
_________________
A journey of a thousand miles begins with a single step...and becoming debt free is a journey!
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SUEBEEHONEY70
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Joined: 12 Oct 2006
Posts: 4390
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Posted: Sun May 25, 2008 1:17 pm Subject:
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Wow, I looked at the template and I feel stupid because it's very confusing to me. I don't know what sections to delete and what sections to include. Is there a more basic template out there.
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bmblbe69
Joined: 25 May 2008
Posts: 80
Debtcc Points: 188
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Posted: Sun May 25, 2008 2:18 pm Subject:
Latest Blog Post : Groceries....How to Save $$! |
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Give me a few minutes, and I'll work one up for you and post it here.
_________________
A journey of a thousand miles begins with a single step...and becoming debt free is a journey!
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SUEBEEHONEY70
Moderator
Joined: 12 Oct 2006
Posts: 4390
Debtcc Points: 61073
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Posted: Sun May 25, 2008 2:43 pm Subject:
Latest Blog Post : Groceries....How to Save $$! |
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I am making the following statement regarding this letter to avoid any drama or accusations: This letter is of my own creation - I did not plagarize anyone's blog or website in order to create it. If any site members or Mods feel the content of the letter is incorrect or should be worded differently, please feel free to post your ideas! I'm open to suggestions. 
If this letter seems to meet with everyone's approval, by all means, feel free to share it. I don't mind anyone using it, provided they keep with the original context of the letter, and avoid using it to make threats to PDL companies - a strongly worded letter is good, but making threats to the wrong company can get you into trouble. Make sure the lender is NOT licensed to lend in your state before you send this letter to them!
| Quote: | To Whom It May Concern:
This letter is regarding my loan account with your company, (company name), under the following name and address: (your name, address and phone).
As of this date (insert current date here), I hereby revoke any and all authorization for your company, (insert their company name) to debit my bank account number (insert your bank account number) at (bank name) or any other bank account in my name by either electronic debit or paper check. Any future debits or attempts to obtain money from my account will be denied.
I also hereby revoke any and all wage assignments contained in any contract, written or verbal.
I will no longer communicate by telephone or fax with your company - you may contact me by e-mail at (your e-mail address) or by mail at my mailing address (your mailing address).
Your company is in violation of California's Cal. Fin. Code §§ 23000 to 23106:
Loan Terms:
Maximum Loan Amount: $300
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: 15% of check
Finance Charge for 14-day $100 loan: $17.65
apr for 14-day $100 loan: 459%
You are not listed on the California Financial Services Licensee Database, which indicates you are not licensed to lend into the state of California. You must be licensed in California to lend in California, according to state law.
As of today, I have paid you $___________ on an original loan amount of $_____________. According to California state law, the maximum amount of principal and interest on this loan is $345. Therefore, I am requesting you immediately mark my loan account paid in full, and refund my overpayment of $______________.
This is the only settlement offer I will make to, or accept from, your company.
I expect to receive a response regarding the above matter within the next 48 hours. Please give this matter due attention.
Sincerely,
(your name)
CC: (your bank) |
Now, bear in mind, getting a refund from some of these companies may be difficult, if not impossible. That's where filing your complaints with the state comes in. They may be willing to send Cease and Desist letters on your behalf to these lenders, which may go a long way in getting your refunds. I can't guarantee they will do that, but it can't hurt to file complaints, and follow up the complaints with a phone call to the Department of Financial Services for California to see if someone can help you in that regard.
The state's Cease and Desist letter DOES NOT replace the letter above - you need to send that first to get the ball rolling. Like I said before, send all the letters by Certified Mail, Return Receipt Requested, so you have proof it was sent and that they received it.
Let me know if you need any other help.
_________________
A journey of a thousand miles begins with a single step...and becoming debt free is a journey!
Last edited by SUEBEEHONEY70 on Sun May 25, 2008 2:50 pm |
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SUEBEEHONEY70
Moderator
Joined: 12 Oct 2006
Posts: 4390
Debtcc Points: 61073
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Posted: Sun May 25, 2008 2:48 pm Subject:
Latest Blog Post : Groceries....How to Save $$! |
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I found the following FAQ regarding the California Deferred Presentment law on the California governmental website. It really helps explain the points I named in my posts above. I've highlighted in red the items that are very important to know. It's long, but it's worth a read.
As you can see by the red highlighted areas below, an internet lender MUST be licensed in California to lend into California - whether they are located there or not. In other words, it doesn't matter what they say about being licensed in their own state, or only having to follow the laws of their own state (or country) - California law says they have to follow California law. That's it. Period.
| Quote: | E. CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAWCALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW
A deferred deposit transaction is a transaction whereby a person defers depositing a customer's personal check until a specific date, pursuant to a written agreement, as provided by California Financial Code Sections 23035. Personal check includes the electronic equivalent of a personal check.
WHAT STATE AGENCY IS RESPONSIBLE FOR THE REGULATION OF DEFERRED DEPOSIT TRANSACTIONS?
On December 31, 2004, regulatory responsibility for Deferred Deposit Originators transferred from the Department of Justice to the Department of Corporations ("Department") when the California Deferred Deposit Transaction Law (Financial Code Section 23000 et. seq.) became operative.
WHO ARE DEFERRED DEPOSIT ORIGINATORS?
Any person who offers, originates, or makes a deferred deposit transaction.
Please note that "person" means an individual, a corporation, a partnership, a limited liability company, a joint venture, an association, a joint stock company, a trust, an unincorporated organization, a government entity, or a political subdivision of a government entity.
WHO IS REQUIRED TO OBTAIN A LICENSE TO ENGAGE IN THE BUSINESS OF DEFERRED DEPOSIT TRANSACTIONS?
Any person that offers, originates or makes a deferred deposit transaction, arranges a deferred deposit for a deferred deposit originator, acts as an agent for a deferred deposit originator, or assists a deferred deposit originator in the origination of a deferred deposit is required to obtain a license from the Department of Corporations
I AM PLANNING TO ENGAGE IN THE BUSINESS OF A DEFERRED DEPOSIT ORIGINATOR. I CURRENTLY DO NOT HAVE ANY LICENSE OR PERMIT. WHERE DO I OBTAIN THE PERMITS OR LICENSES TO ENGAGE IN THIS BUSINESS?
If you wish to engage in the business of deferred deposit transactions you will need to have a license from the Department of Corporations. Refer to Question Number 8.
I AM LOCATED IN CALIFORNIA PLANNING TO ENGAGE IN THE BUSINESS OF MAKING DEFERRED DEPOSIT TRANSACTIONS OVER THE INTERNET ONLY TO RESIDENTS IN OTHER STATES. AM I REQUIRED TO OBTAIN A LICENSE FROM THE DEPARTMENT.OF CORPORATIONS UNDER THE CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW?
Yes.
I AM NOT LOCATED IN CALIFORNIA PLANNING TO ENGAGE IN THE BUSINESS OF MAKING DEFERRED DEPOSIT TRANSACTIONS OVER THE INTERNET TO RESIDENTS IN CALIFORNIA AND TO RESIDENTS IN OTHER STATES. AM I REQUIRED TO OBTAIN A LICENSE FROM THE DEPARTMENT OF CORPORATIONS UNDER THE CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW.
Yes.
WHAT ARE THE REQUIREMENTS TO OBTAIN A LICENSE TO ENGAGE IN THE BUSINESS OF DEFERRED DEPOSIT FROM THE DEPARTMENT OF CORPORATIONS?
For each location, submit an application with the appropriate exhibits, an application fee of $200 and an investigation fee of $100 and the assessment payment (if applicable). All fees and the assessment are non-refundable.
File a surety bond in the amount of $25,000 with the application.
Submit financial statements prepared in accordance with Generally Accepted Accounting Principles that demonstrates that the applicant has a net worth of at least $25,000. After licensure, the licensee shall be required to maintain a net worth of at least $25,000 at all times.
The application must include fingerprint information submitted by live scan and the cost of fingerprint processing for the following:
The applicant;
The general partners, officers, directors and persons owning or controlling, directly or indirectly, 10% or more of the outstanding equity interests of the applicant; and
Other key persons involved, such as managers/members, trustees, any other officers with direct responsibility for the conduct of applicant's deferred deposit activity, and the persons who will be in charge of the place of business.
WHERE DO I OBTAIN FINGERPRINT LIVE SCAN FORMS?
The fingerprint live scan forms are available through the Department's website at Request for Live Scan Service - Applicant Submission.
IS A MOBILE UNIT THAT CONDUCTS DEFERRED DEPOSIT TRANSACTIONS CONSIDERED A SEPARATE LOCATION?
Yes. Each mobile unit conducting deferred deposit transactions must submit an application with the appropriate fees.
WHEN CAN THE CDDTL SHORT FORM APPLICATION FOR LICENSURE BE FILED?
A person applying for a license must first file the Department of Corporations' "Application for A License Under the California Deferred Deposit Transaction Law." Thereafter, the short form license application may be filed by the same person seeking a license for additional locations.
WHERE DO I OBTAIN AN APPLICATION FOR A LICENSE UNDER THE CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW?
The application forms are available through the Department's website or at any of the Department's office locations or calling 1-866-ASK CORP (1-866-275-2677):
320 W. 4th Street, Suite 750 Los Angeles, CA 90013
71 Stevenson Street, Suite 2100 San Francisco, CA 95105
1515 K Street, Suite 200 Sacramento, CA 95814
1350 Front Street, Room 2034 San Diego, CA 92101
WHERE DO I SEND THE COMPLETED LICENSE APPLICATION, INCLUDING FEES?
All application information should be submitted to the Department's Los Angeles Office:
Department of Corporations
320 West 4th Street, Suite 750
Los Angeles, CA 90013-2344
HOW OFTEN DO I NEED TO RENEW THE LICENSE ISSUED BY THE DEPARTMENT OF CORPORATIONS FOR A DEFERRED DEPOSIT ORIGINATOR?
You do not need to renew the license issued to a Deferred Deposit Originator. The license shall remain in effect until surrendered, suspended or revoked.
ARE THERE LIMITATIONS ON A DEFERRED DEPOSIT TRANSACTION?
Yes. The face amount of the customer's personal check or the electronic equivalent of the customer's personal check may not exceed $300 and the fee charged may not be more than 15% of the face amount of the check.
ARE THERE LIMITATIONS ON THE FEES THAT MAY BE CHARGED IN RELATION TO A DEFERRED DEPOSIT TRANSACTION?
Yes. The fee may not exceed 15% of the face amount of the check. A single fee not to exceed $15 may be charged for a returned check. No additional fees may be added for late payments or returned checks.
ARE THERE LIMITATIONS ON THE NUMBER OF DEFERRED DEPOIST TRANSACTIONS A LICENSEE MAY MAKE TO A CUSTOMER IN A 12-MONTH PERIOD?
No. There are no limits on the number of deferred deposit transactions a licensee may make to a customer in a 12-month period. A licensee cannot make a new deferred deposit transaction during the period an earlier deferred deposit transaction is in effect for the same customer and the proceeds of a new deferred deposit transaction may not be used to pay off an existing deferred deposit transaction from the same licensee.
IS A LICENSEE ALLOWED TO MAKE A DEFERRED DEPOSIT TRANSACTION TO A CUSTOMER WITH AN EARLIER DEFFERED DEPOSIT TRANSACTION THAT IS IN EFFECT IF THE TOTAL OF THE EXISTING DEFERRED DEPOSIT TRANSACTION AND THE NEW DEFERRED DEPOSIT TRANSACTION IS LESS THAN THE MAXIMUM ALLOWED OF $300?
No. A licensee can not enter into a deferred deposit transaction with a customer during the period an earlier deferred deposit transaction is in effect for the same customer, including transactions where the existing deferred deposit transaction and the new deferred deposit transaction does not exceed the maximum amount allowed of $300.
IS A LICENSEE ALLOWED TO MAKE A NEW DEFERRED DEPOSIT TRANSACTION TO A CUSTOMER THAT HAS AN EARLIER DEFERRED DEPOSIT TRANSACTION THAT IS IN EFFECT FROM ANOTHER LOCATION OF THE SAME LICENSEE?
No. Licensees with multiple locations cannot enter into a deferred deposit transaction with a customer during the period an earlier deferred deposit transaction is in effect for the same customer at any of the licensee's locations.
CAN A LICENSEE USE A CUSTOMER'S PERSONAL CHECK OR THE CUSTOMER'S ELECTRONIC EQUIVALENT OF A PERSONAL CHECK RECEIVED FROM A PREVIOUS DEFERRED DEPOSIT TRANSACTION FOR A NEW DEFERRED DEPOSIT TRANSACTION?
No. A licensee is not permitted to accept or use a customer's personal check or a customer's electronic equivalent of a personal check received from a previous deferred deposit transaction for a new deferred deposit transaction.
CAN A LICENSEE ACCEPT COLLATERAL IN CONJUNCTION WITH A DEFERRED DEPOSIT TRANSACTION?
No.
IS A LICENSEE ALLOWED TO MAKE THE DEFERRED DEPOSIT TRANSACTION CONTINGENT ON THE PURCHASE OF OTHER SERVICES OR PRODUCTS?
No.
ARE THERE ANY SPECIAL REQUIREMENTS FOR A LICENSEE THAT MAKES A DEFERRED DEPOSIT TRANSACTION TO A NON-ENGLISH SPEAKING PERSON?
Yes. The written agreement must be written in the same language principally used in the oral discussions or negotiations leading to the execution of the deferred deposit agreement and must be in at least 10-point bold type.
IS A LICENSEE ALLOWED TO EXTEND THE DUE DATE OF AN OUTSTANDING DEFERRED DEPOSIT TRANSACTION OR ALLOW THE CUSTOMER TO MAKE PAYMENTS ON AN OUTSTANDING DEFERRED DEPOSIT TRANSACTION?
Yes, though the licensee is not required to extend the due date or enter into an agreement to allow the customer to make payments on an outstanding deferred deposit transaction.
WHAT ARE THE FEES A LICENSEE MAY CHARGE IN CONNECTION WITH EXTENSIONS AND PAYMENT PLANS GRANTED FOR REPAYMENT OF OUTSTANDING DEFERRED DEPOSIT TRANSACTIONS?
A licensee may allow an extension of time to repay an outstanding deferred deposit transaction or a payment plan, but may not charge any additional fees or charges of any kind in conjunction with the extension or payment plan.
IS A LICENSEE PERMITTED TO DEBIT A BORROWER'S BANK ACCOUNT ELECTRONICALLY USING ACH TRANSFERS ON MULTIPLE DAYS FOR VARYING AMOUNTS TO COLLECT A DELINQUENT ACCOUNT WITHOUT THE BORROWER'S AUTHORIZATION?
No. The agreement or an addendum to the agreement must specify the days and amounts the licensee is authorized to debit the borrower's bank account electronically using ACH transfers to collect delinquent accounts. Any addendums to the agreement authorizing the licensee to debit the borrower's bank account electronically to collect overdue accounts must be in writing signed by the borrower, by fax with the borrower's signature or electronically authorized by the borrower over the Internet. The written agreement should cover the manner in which a customer's check will be deposited and the specific date of deposit. For example, when the licensee elects to deposit a personal chck by electronic means, the written agreement should specify that the licensee electronically deposits the customer's check and the specific date. If the licensee wishes to deposit the check either manually or electronically when there are insufficient funds in the customer's account, the written agreement should also specify the method and date of depositing the check under those circumstances. The written agreement should cover the manner in which a customer's check will be deposited and the specific date of deposit. For example, when the licensee elects to deposit a personal check by electronic means, the written agreement should specify that the licensee electronically deposits the customer's check and the specific date. If the licensee wishes to deposit the check either manually or electronically when there are insufficient funds in the customer's account, the written agreement should also specify the method and date of depositing the check under those circumstances.
CAN A CUSTOMER BE CRIMINALLY PROSECUTED FOR FAILING TO REPAY A DEFERRED DEPOSIT TRANSACTION?
No. A customer cannot be criminally prosecuted or threatened with criminal prosecution to collect a delinquent deferred deposit transaction.
CAN A CUSTOMER BE REQUIRED TO PAY TREBLE DAMAGES IF THE CHECK DOES NOT CLEAR?
No. A check that is being negotiated as part of a deferred deposit transaction is not subject to the provisions of Section 1719 of the Civil Code. No person shall be required to pay treble damages if the check does not clear.
IS A CUSTOMER REQUIRED TO PAY COURT COSTS AND FILING FEES FOR A SMALL CLAIMS COURT ACTION TAKEN BY A LICENSEE TO COLLECT A DELINQUENT DEFERRED DEPOSIT TRANSACTION ACCOUNT?
The Small Claims Court Judge hearing the case will determine if court costs and filing fees will be awarded to the licensee. The Deferred Deposit Transaction Agreement may not contain any provisions that require the customer to pay court costs or filing fees in conjunction with an action taken by the licensee to collect a delinquent account.
WHO DO I CONTACT IF I FEEL A DEFERRED DEPOSIT ORIGINATOR IS ENGAGING IN IMPROPER OR ILLEGAL COLLECTION PRACTICES?
Deferred Deposit Originators are subject to the California Fair Debt Collection Practices Act (California Civil Code, commencing with Section 1788). Refer to the California State Attorney General's website at http://ag.ca.gov/consumers/general/collection_agencies10.php for additional information regarding the Fair Debt Collections Act and instructions for filing complaints. You may also contact the Federal Trade Commission, which enforces the Federal Fair Debt Collections Practices Act, by mail at Consumer Response Center, Washington, DC 20580-0001 or telephone at 1(877)-FTC-Help.
HOW DO I CHECK IF A DEFERRED DEPOSIT ORIGINATOR IS LICENSED BY THE DEPARTMENT OF CORPORATIONS?
You may check on the Department of Corporations' website at www.corp.ca.gov, Financial Services Licensee Listing, or call the Department at 1-866-275-2677 (866-ASK-CORP).
ARE THE LICENSEES SUBJECT TO EXAMINATION BY THE DEPARTMENT OF CORPORATIONS?
Yes. The California Deferred Deposit Transaction Law provides that the Department may at any time, but not less than once every two years, investigate the business of deferred deposits, and examine the books, accounts, records and files of every licensee. The purpose of the regulatory examination is to determine compliance with the CDDTL and the rules and regulations established by the Commissioner. The licensee is required to allow the Department's representatives to have free access to the offices and places of business, along with books, accounts, records, files, safes and vaults. Each licensee is required to pay for the costs of the regulatory examination.
HOW DO I SURRENDER MY LICENSE IF I AM PLANNING TO CEASE ENGAGING IN DEFERRED DEPOSIT TRANSACATION BUSINESS??
A licensee may apply to surrender a license by delivering to the Commissioner written notice of the intent to surrender the license. The application to surrender the license must be signed by an authorized representative of the licensee and include the original license.
DO I NEED TO NOTIFY THE DEPARTMENT OF CORPORATIONS IF I CHANGE THE ADDRESS OF A LICENSED LOCATION?
Yes. A licensee is required to notify the Department at least ten days prior to the change of an address for a licensed location. The Department will approve the change in location by issuing an amended license with the new address.
IS A LICENSEE REQUIRED TO NOTIFY THE DEPARTMENT OF CORPORATIONS IF THERE ARE CHANGES IN THE APPLICATION AFTER THE LICENSE IS ISSUED?
Yes. The license issued under the CDDTL is not transferable or assignable. Generally, if there is a change in entity type, a new long form license application and new short form license applications for any additional locations would have to be filed for the new entity. A license issued to a partnership or limited partnership is not transferred or assigned by the death, withdrawal or admission of a partner, general partner or limited partner, unless the death, withdrawal, or admission dissolves the partnership to which the license was issued. If the change dissolves the partnership, a new long form license application and new short form license applications for any additional locations would have to be filed for the new partnership.
A licensee is required to notify the Department of any change of its officers, directors or any persons named in the application within sixty days from the date of the change. The amendment to the original license application reflecting the change shall include the effective date of the change and the names of the persons involved in the change. The new persons are required, at a minimum, to submit Statement of Identity and Questionnaires and fingerprint information with the notification of the change.
ARE LICENSEES ALLOWED TO STORE AND MAINTAIN THE BOOKS, RECORDS AND ACCOUNTS IN ELECTRONIC FORMAT?
Yes. The books, records and accounts may be retained and provided to the Commissioner in electronic format provided that the electronic records are maintained and provided in a format that allows the Commissioner complete access to all of the books, accounts and records. The electronic records must be maintained in a media that ensures reliable, credible, accurate and auditable records. The electronic records must be provided to the Commissioner in a software format that is acceptable to the Commissioner and allows Commissioner to download and print any or all of the records that are stored and maintained electronically. The licensee shall provide any and all records maintained in electronic format in printed form if the electronic records are not in a format that enables the Commissioner to determine if the licensee is complying with the CDDTL or rules there under.
WHERE CAN I OBTAIN INFORMATION REGARDING THE LAW AND REGULATIONS OF THE CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW?
The California Deferred Deposit Transaction Law is contained in Division 10 of the California Financial Code. The California Deferred Deposit Transaction Law begins at Section 23000 et seq. Regulations are being developed at this time. The California Deferred Deposit Transaction Law may be obtained from the Official California Legislative Information website. The law can be found in the California Law section on this website. After they are developed the Regulations will be available from the Office of Administrative Law's website under CCR. There are also other websites available which may provide this information or it may be purchased from various vendors. Public libraries may also have copies of the law and regulations. |
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