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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

----------------------------------------------------------------------
Desist and      Location(s):            Violations of California
 Refrain Order                           Financial Code section 23005:
 Issued To:                              (Prohibits unlicensed
                                         activity)

----------------------------------------------------------------------
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.
----------------------------------------------------------------------
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.
----------------------------------------------------------------------
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.
----------------------------------------------------------------------
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.
----------------------------------------------------------------------
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.
----------------------------------------------------------------------

----------------------------------------------------------------------
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):

----------------------------------------------------------------------
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
----------------------------------------------------------------------

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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COPYRIGHT 2005 Gale Group


 
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