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 Posted: Tue Jun 17, 2008 3:41 pm Subject: Eastside Lenders |
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Does anyone know if a PDL company must be licensed in CA in order to loan to CA residents? Eastside is telling me that they are licensed in DE and they don't need to be licensed anywhere else to do business with whomever they choose in whatever state they want. Any help would be greatly appreciated. Thanks
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bmblbe69
Joined: 25 May 2008
Posts: 80
Debtcc Points: 176
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| Posted: Tue Jun 17, 2008 5:16 pm Subject: |
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bmblbe69 -
According to California state law:
| Quote: | CALIFORNIA 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.
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According to California state law, a lender MUST be licensed in California in order to lend into California. A Delaware license will not suffice.
They are lying to you when they say they can do business where ever they want, simply because they are licensed in Delaware.
_________________
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: 4393
Debtcc Points: 61053
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| Posted: Tue Jun 17, 2008 5:47 pm Subject: |
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You are awesome SUEBEE! Thank you for the info. This is my last one and they are being stubborn as mules.
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bmblbe69
Joined: 25 May 2008
Posts: 80
Debtcc Points: 176
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| Posted: Tue Jun 17, 2008 6:17 pm Subject: |
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Keep after them, bmblebe! In fact, can I make a suggestion? Call your governmental body that oversees payday lenders:
| Quote: | 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 |
Tell them you have a payday lender that insists they can lend into California because they are licensed in Delaware. See what they say - then, get the name of the person who handles complaints against illegal lenders and ask if it's ok if you use them as a reference when speaking to Eastside.
If they give you permission to do so, when Eastside calls again, give them that person's name and tell them if they are so sure they are licensed to lend into California by virtue of being licensed in Delaware, perhaps you can get their name and phone number and have your contact for the State of California Department of Corporations, Financial Services Division give them a call and discuss it with them.
_________________
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: 4393
Debtcc Points: 61053
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