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 Posted: Wed Sep 13, 2006 5:44 am Subject: California strikes again against pdls |
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| Quote: | Arnold Schwarzenegger, Governor
Preston DuFauchard, Commissioner
Contact:
Susie Wong (916) 324-9011
CALIFORNIA DEPARTMENT OF CORPORATIONS ORDERS
PAYDAY LOAN STORES TO STOP LENDING IN STATE
Sacramento, September 8, 2006 - California Department of Corporations (DOC) has brought enforcement actions against four online stores that offer "pay day loans," on the ground that the stores have not been licensed in California.
Operators in the business of making a small, unsecured, short-term cash advance to customers, typically cleared on payday, are required to be licensed by DOC under the California Deferred Deposit Transaction Law. To date, DOC has issued enforcement actions to 40 payday lenders operating in violation of state law.
In the current enforcement actions, DOC issued desist-and-refrain orders to four online Deferred Deposit lenders to prohibit them from entering into transactions in California. The companies named include Ameriloan.com, USFastCash.com, PreferredCashLoans.com, and UnitedCashLoans.com. The desist-and-refrain order further forbids Internet Cash Advance Marketing, Inc. of Vancouver B.C. and President
Clive L. Boulton from offering or arranging payday loans for the online companies without a state license. In November 2005, a Southern California customer of USFastCash was levied fees and charges in excess of the amount allowed under state law.
"Online deferred deposit transactions present a risk to California consumers, and may unfairly target military personnel," said Corporations Commissioner Preston DuFauchard. "In addition, allowing unlicensed Deferred Deposit lenders to operate in the state unfairly penalizes those companies that are properly licensed and examined by the department. The risks presented by this type of unlawful activity require swift and substantial enforcement response."
Counsel Uche Enenwali is responsible for this case.
The Department of Corporations (DOC) is California's investment and financing authority and is responsible for the regulation, enforcement, and licensing of securities, franchises, off-exchange commodities, investment and financial services, independent escrows, consumer and commercial finance lending, DOC residential mortgage lending, payday lenders, check sellers, bill payers, and debt reduction services. Consumers should contact the department to check on the status of the companies, investments or other services they are considering and the licensing status of the person. Contact DOC's toll-free Consumer Resource Center at 1-866-ASK-CORP (1-866-275-2677) or visit www.corp.ca.gov. |
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NotsoLucky
Joined: 02 Nov 2005
Posts: 3154
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| Posted: Wed Sep 13, 2006 5:46 am Subject: |
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Great - They need to get rid of them all!
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ouzog12
Joined: 02 Aug 2006
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| Posted: Wed Sep 13, 2006 5:47 am Subject: |
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This is GREAT news for us in the Golden State! But does this mean that ALL of the PDL co's have to leave, including the storefront ones? And I wonder about enforcement actions? About time that Arnie did something right, for a change!
Thanks for sharing!
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kscornell
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| Posted: Wed Sep 13, 2006 10:52 am Subject: |
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It's good news for the people residing in California. Those four loan companies are often discussed here. California attorney general is taking actions against the loan companies not licensed in the state. After being barred from doing business in California, they will continue with their illegal activities in other states. The government of each US state has to adopt such strict laws and throw payday loan companies out of business. That's the only remedy
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aciotsf
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Joined: 09 Mar 2006
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| Posted: Wed Sep 13, 2006 6:37 pm Subject: |
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You are absolutely right. It's kind of like drug dealers. Once you kick them out of your neighborhood, they move on down the road. This is why it's so important for EVERYONE to email their elected officials and throw enough of a stink to get them all out!
The more of a stink is raised, the quicker they will be banned.
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kscornell
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| Posted: Wed Sep 13, 2006 8:04 pm Subject: |
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I have often wondered if the money that these pdls fraudulently take is funding some terrorist group, their drug habits, etc. Guess I let my mind wonder too much.
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NotsoLucky
Joined: 02 Nov 2005
Posts: 3154
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| Posted: Wed Sep 13, 2006 8:58 pm Subject: |
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Good for California!
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marylee
Joined: 12 Sep 2006
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| Posted: Wed Sep 20, 2006 11:50 am Subject: |
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Internet Cash Advance Marketing Inc, is: They are Rio, ameriloan, United Cash Loans, National Fast Cash.
Is this the RIO resources that keeps ripping everyone off?
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PaulisGirl
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| Posted: Wed Sep 20, 2006 11:51 am Subject: |
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Yep thats the one.
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NotsoLucky
Joined: 02 Nov 2005
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| Posted: Wed Sep 20, 2006 1:25 pm Subject: |
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Tammy, I agree, I have found myself wondering as well what are these internet pdls funding. You have to kind of wonder because they are difficult to trace and locate and have many different names. Have you ever wondered what the IRS might find if they confiscated their records (that is if there are any records besides the millions of debits they've taken from customers, which the proof lies in our bank statements.). Are these companies paying their fair share of taxes if any?
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WHEREAMI
Joined: 26 Aug 2006
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| Posted: Wed Sep 20, 2006 2:41 pm Subject: |
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They probably aren't paying anything in the way of taxes. If they are, they are probably cheating on their taxes and they will eventually get caught. We all know what the IRS will do then.
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NotsoLucky
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| Posted: Wed Sep 20, 2006 2:42 pm Subject: |
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Do you think they might need to know? I have thought about it.
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WHEREAMI
Joined: 26 Aug 2006
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| Posted: Wed Sep 20, 2006 2:46 pm Subject: |
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Based on this new order, should any of us in California tell these pdl's that we will only pay our principal back plus what is owed by state law, or just our principal because they are not lending legally here and the State is actually recognizing these companies as illegally doing business.
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PaulisGirl
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| Posted: Wed Sep 20, 2006 2:47 pm Subject: |
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I would pay back what you borrowed and that would be it. I would also let them know that they are illegal in the state.
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NotsoLucky
Joined: 02 Nov 2005
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| Posted: Wed Sep 20, 2006 2:54 pm Subject: |
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Well paying back what you borrowed is just fine with me, it's just all the excessive fees that they tend to charge that are the killer, without those excessive fees, I'm sure that alot of us can and will be able to pay off alot quicker.
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PaulisGirl
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| Posted: Wed Sep 20, 2006 3:33 pm Subject: |
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Tammy,that's great-thanks for the info. Maybe,just maybe,others will take note and follow suit. I've always said,the more people that make alot of noise about something,gets attention  ...Karen
_________________
As long as you are alive, there's always hope
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Bossy4455
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