Earlier this month, in Fama v. Opportunity Financial LLC, a Magistrate Judge of the federal district court for the Western District of Washington held that the arbitration provision in OppFi’s installment loan agreement is enforceable and rejected the plaintiff’s contentions that the provision is substantively and procedurally unconscionable. This is the third federal district court decision—out of four putative class actions filed to date against OppFi by the same plaintiff’s counsel stating the same claims—to compel arbitration of the named plaintiff’s individual claims.… Continue Reading
A California state court has overruled the demurrer filed by Opportunity Financial, LLC (OppFi) to the cross-complaint filed by the California Department of Financial Protection and Innovation (DFPI) in which OppFi asked the court to reject the DFPI’s “true lender” challenge. In its cross-complaint, the DFPI alleges that California usury law applies to loans made through OppFi’s partnership with FinWise Bank (Bank) because OppFi, and not the Bank, was the “true lender.”… Continue Reading
In an announcement to its subscribers sent electronically on May 23, 2022, the California Department of Financial Protection and Innovation (“DFPI”) notified applicants – and prospective applicants – for a license under California’s Debt Collection Licensing Act (the “Act”) that changes mandated by the Federal Bureau of Investigation (“FBI’) to state agency protocols for requesting federal background checks have caused “unforeseen” and unavoidable processing delays.… Continue Reading
The California Department of Financial Protection and Innovation (DFPI) has published a notice on its website concerning delays that debt collectors and buyers seeking to comply with the new licensing requirement in the state’s Debt Collection Licensing Act are currently experiencing.
The new law, passed in September 2020, requires debt collectors and buyers to apply for a DFPI license by December 31, 2021. … Continue Reading
The California Department of Financial Protection and Innovation announced earlier this month that it has hired Christina Tetreault to lead the new Office of Financial Technology and Innovation. The hiring of Ms.Tetreault is particularly significant because, according to the DFPI’s press release, “[t]he announcement finalizes hiring for the most critical positions needed to stand up major offices and divisions to carry out the California Consumer Financial Protection Law which took effect Jan.… Continue Reading
After discussing the pandemic’s impact on the DFPI’s activities, Commissioner Alvarez discusses the DFPI’s focus on diversity and inclusion, its creation of a new registration system for financial services companies, and its approach to enforcement priorities. The Commissioner also spoke to the impact of a Biden Administration, including possible areas of collaboration with the CFPB, and the role of its new Office of Financial Technology Innovation.… Continue Reading
The California Department of Financial Protection and Innovation (DFPI) announced last week that it has entered into a consent order that permanently bars James Berry and any company he owns or controls from soliciting customers for Property Assessed Clean Energy (PACE) financing and seeking future enrollment as a solicitor for PACE programs. … Continue Reading
In its February 2021 Bulletin, the California Department of Financial Protection and Innovation (DFPI) reminds licensed mortgage loan servicers that DFPI examinations will include processes to determine compliance with state and federal laws providing consumer protections with regard to COVID-19-related foreclosures. The DFPI notes that these laws “include provisions allowing for forbearance of mortgage payments, post-forbearance options forbidding the requirement of lump sum payments, and the extension of the California Homeowner Bill of Rights to tenant occupied principal residences.” … Continue Reading
Yesterday, the California DFPI issued an invitation for stakeholders to provide input on rulemaking to implement the recently-effective California Consumer Financial Protection Law (CCFPL). Comments are due by March 8, 2021.
As the invitation notes, pursuant to Cal. Fin. Code. Sec. 90001, the DFPI has broad authority to establish rules to implement the CCFPL. … Continue Reading