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SACRAMENTO, Calif. -- California Department of Corporations (Corporations) has brought enforcement actions against six payday loan stores operating in Southern California found to be transacting payday loans without a proper license in California.
Operators in the business of making a small, unsecured, short-term cash advance to customers, typically cleared on payday, are licensed by Corporations effective December 31, 2004 under the California Deferred Deposit Transaction Law.
Corporations issued desist and refrain orders to six payday lenders to halt payday loans including Anyday's Payday and Loan of Yucaipa, Cash It Quick in Lancaster, D & J Market of Hesperia, Express Cash Advance in Lake Elsinore, K & W Check Cashing of Gardena, and Pro Check Cashing in Santa Ana. The move comes after an investigation, which determined that the companies had no legal authority to transact payday loans in this state. (See attachment for fact sheet on desist and refrain orders.)
"Unlicensed payday lenders evade state consumer protections and will not be tolerated as Corporations enforces the new law," said California's Acting Corporations Commissioner Wayne Strumpfer. "Just as importantly, it creates an unfair advantage for unscrupulous companies against those who operate within the scope of our state laws."
The Department of Corporations is California's investment and financing authority and is responsible for the regulation, enforcement, and licensing of securities, franchises, off-exchange commodities, investment and financial services, independent escrows, consumer and commercial finance lending, residential mortgage lending, and payday lenders. For further information or to obtain a complaint form, please visit Corporations' Web site at www.corp.ca.gov or call our consumer resource center toll-free at 1-866-ASK-CORP (1-866-275-2677).
ATTACHMENT
CALIFORNIA DEPARTMENT OF CORPORATIONS
DESIST AND REFRAIN ORDERS ISSUED TO PAYDAY LOAN STORES
JUNE 2, 2005
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Desist and Location(s): Violations of California
Refrain Order Financial Code section 23005:
Issued To: (Prohibits unlicensed
activity)
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Anyday's Payday 34309 Yucaipa Blvd. Originated at least 143 payday
and Loan and Yucaipa, CA 92399 loans since January 1, 2005
Owner George without a license or
Starkey exemption from licensing by
the California Department of
Corporations.
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Cash It Quick Main Office: Engaged in the business of
and Owner 43535 N. Gasden Ave., payday lending without a
Nadia Haddad Suite F license or exemption from
Lancaster, CA 93534 licensing by the California
Department of Corporations.
Branch Office: Cash It and Haddad assisted
18503 Victory Blvd. Money Mart Express, Inc. in
Reseda, CA 91335 originating payday loans by
advertising on its storefront
as a payday loan store,
handling the borrower's
application for Money Mart,
and distributing Money Mart
debit cards.
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D & J Market 18361 Bear Valley Rd., Originated at least 25 payday
and Owner Suite 1 loans since January 1, 2005
Suhail Mahho Hesperia, CA 9234 without a license or
exemption from licensing by
the California Department of
Corporations.
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Express Cash 16331 Lakeshore Dr., Originated at least 700 payday
Advance and Suite B loans since January 1, 2005
Owner Bianca Lake Elsinore, CA without a license or
Soto 92530 exemption from licensing by
the California Department of
Corporations.
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K & W Check 14137 S. Vermont Ave. Engaged in the business of
Cashing Gardena, CA 90247 payday lending without a
and Owner and license or exemption from
Manager Masen licensing by the California
Khattat Department of Corporations.
K & W and Khattat assisted
Money Mart Express, Inc. in
originating at least 90
payday loans since January 1,
2005 by advertising on its
storefront as a payday loan
store, handling the
borrower's application for
Money Mart, and distributing
Money Mart debit cards.
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Desist and Location(s): Violations of California
Refrain Order Financial Code section 23005
Issued To: (prohibits unlicensed
activity) and 23046 (requires
payday lenders to grant
Corporations Commissioner
access to books and records):
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Pro Check Main Office: Originated at least 35 payday
Cashing and 2413 S. Fairview St., loans since January 1, 2005
President Suite 1 without a license or
Yogesh Santa Ana, CA 92704 exemption from licensing by
Hiralal the California Department of
Branch Offices: Corporations.
707 N. Bristol St.,
Suite F Refused to grant the
Santa Ana, CA 92703 Commissioner access to its
books and records for review
616 N. Anaheim Blvd., in violation of California
Suite C Financial Code section 23046.
Anaheim, CA 92805
1440 S. Anaheim Blvd.,
Suite A17
Anaheim, CA 92805
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NOTE: To view the desist and refrain orders issued to payday loan businesses, visit Corporations' Web site at http://www.corp.ca.gov/pressrel/05/corp/news.htm. Click on HTML version and link at bottom of the page to the order.
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