Online Payday Loan Operations Shut Down in California for Lack of License
By J.J. CameronPayday Loan Writer
It's not a great time to be an online payday loan company servicing California.
Four businesses of this nature were ordered to stop conducting int he state in because they're not licensed in there, regulators said.
The California Department of Corporations identified the companies as Ameriloan.com, USFastCash.com, PreferredCashLoans.com and UnitedCashLoans.com. The desist-and-refrain order further forbids Internet Cash Advance Marketing Inc. of Vancouver, British Columbia, and President Clive L. Boulton from offering or arranging payday loans for the online companies without a state license, officials said.
"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 (aka payday loan online 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."
Last November, a Southern California customer of USFastCash was levied fees and charges in excess of the amount allowed under state law, according to the DOC's Susie Wong.
To date, the department has issued enforcement actions to 40 no faxing payday loan providers operating in violation of state law. More will probably follow.