On November 7, 2024, the California Department of Financial Protection and Innovation (DFPI) announced that it had entered into a settlement agreement with a cryptocurrency lender resolving allegations that the lender violated the California Financing Law (“CFL”).
This action follows an examination by the DFPI in which the Department found that the crypto lender violated the CFL by (1) failing to consider borrowers’ ability to repay their loans; (2) charging borrowers interest before the loan proceeds were disbursed; (3) failing to provide consumers with credit counseling; (4) failing to report payment performance to credit bureaus; and (5) failing to accurately disclose annual percentage rates in loan disclosure documents.
Pursuant to the settlement agreement, the lender agreed to a license revocation, to desist and refrain from violations of the CFL, and to discontinue unsafe or injurious practices. The crypto lender also agreed to pay a fine of $175,000; however, since the lender is in bankruptcy and no longer operating, the DFPI waived payment of the fine.
The post California DFPI Revokes Lending License from Crypto Lender appeared first on Consumer Finance Insights (CFI).