California Bill Would Deem Some Lenders As Licensed

California generally requires that persons engaged in the business of making loans be licensed. If not licensed under some other statute (such as the banking, credit union or residential mortgage lending laws), a lender will generally be subject to...

California Bill Would Establish Registration Program With Respect To Commercial Financing Or Commercial Financing Brokerage Services

Recently, I wrote about the California Office of Administrative Law's rejection of regulations proposed by the Department of Financial Protection & Innovation.  These proposed regulations were intended to "implement, interpret, and make specific...

California Bill Would Require Licensing Of Commercial Financing Providers

Last week, Senator Steven M. Glazer introduced a bill, SB 1482, that would require licensing of "commercial financing providers" and "commercial financing brokers" with the Department of Financial Protection & Innovation under the California...

Is Someone Who Makes No Loans, A Lender?

The California Finance Lenders Lawprohibits any "person" from engaging in the business of a "finance lender" without a license, unless otherwise exempt.  Cal. Fin. Code § 22100(a).   The CFL defines a "finance lender" as follows:

Court Ruling Deals Blow To DFPI's "True Lender" Theory

While the California Financing Law defines "finance lender", it does so in a very open-ended and nonspecific manner. Cal. Fin. Code § 22009 ("'Finance lender' includes any person who is engaged in the business of making consumer loans or making...

The Nebulous Meaning Of "Small Business" In New Ban On Commercial Loan Fees

Beginning in January, "covered entities" will be prohibited from charging specified fees in connection with a commercial financing transaction with a "small business" or "small business" owner.  Cal. Stat. ch. 881 (SB 666). Although relatively brief,...

Unlicensed Lender Parries Unfair Competition Claim

Yesterday's post concerned discussed Lagrisola v. North American Financial Corp., 2023 WL 7273708 (Nov. 3, 2023), in which the Court of Appeal held that a borrower had failed to plead a cause of action against an unlicensed lender under Section...

Court Of Appeal Finds No Private Right Of Action Against Unlicensed Lender

Section 22100 of the California Financial Code prohibits persons from engaging in the business of a finance lender or broker without obtaining a license from the California Commissioner of Financial Protection & Innovation. Section 22751 provides...

Whom Should The Law Protect - The Borrower/Issuer Or Lender/Purchaser?

The many California laws are intended to protect borrowers.  The California Financing Law, for example, provides that it is to be liberally construed to, among other things, "protect borrowers against unfair practices by some lenders, having due...

1 2 3 4 5