Lawsuit Challenges DFPI’s Threat to Enforce Fair Access to Credit Act | Allen Matkins


Last week, Opportunity Financial, LLC filed a lawsuit challenging the Ministry of Financial Protection and Innovation’s alleged threat to take enforcement action for violations of AB 539, the so-called fair access to credit. Passed in 2019, AB 539 imposes an interest rate cap on consumer loans between $2,500 and $10,000 from approved lenders under the California Finance Act.

Opportunity Financial’s complaint rests on the assertion that the allegedly offending loans were and are made by a Utah bank. As such, the complaint asserts that the loans are statutorily exempt and that the plaintiff is not a lender within the meaning of the FCA. In February, Judge Jeffrey S. White ruled against the State of California’s challenge to the Federal Deposit Insurance Corporation’s Interest Rate Authority rule, which provides that the eligibility of interest is determined at the time the loan is made and is not affected by the sale or assignment of a loan. California v. FDIC, 2022 US Dist. LEXIS 22719.

Today in literary history

DEVIN – Beware of the ides of March.

CAESAR – What man is he?

BRUTUS – A diviner tells you to beware of the ides of March.

CAESAR – Place him before me; let me see his face.

CASSIUS Companion, come from the crowd; look at Caesar.

CÉSAR – – What are you telling me now? Speak again.

DEVIN – Beware of the ides of March.

CAESAR – He is a dreamer; leave it: pass.

Wm. Shakespeare, Julius Caesar, Act I, sc. 2.

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