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Texas DMV issues waivers for titles
On March 16, the Texas Department of Motor Vehicles (DMV) issued a waiver of the time in which individuals must apply for title, and a waiver of the associated delinquent transfer penalty. The waiver is effective immediately and applies to any title application submitted between March 16 and 60 days after the DMV notifies the public that normal titling services have resumed.
Payday lender settles with California DBO for interest rate cap avoidance
On March 12, the California Department of Business Oversight (DBO) announced a $160,000 settlement with the California subsidiary of a payday lender for allegedly adding improper fees to installment loan principle amounts in order to avoid the California Finance Law’s (CFL) interest rate cap. The settlement resulted from a DBO examination in which the DBO issued a finding that: (i) the lender failed to exclude fees payable to the California DMV when calculating the principal amount of certain vehicle title loans; (ii) excluding the DMV fees, the bona fide principal amount of the loans at issue was less than $2,500; and (iii) the loans were, therefore, subject to the CFL interest rate cap on loans with a principal amount of less than $2,500, which was exceeded on 591 loans. Without admitting to any wrongdoing, the lender agreed to pay an administrative penalty of approximately $78,000 to the DBO and to refund approximately $82,000 to allegedly affected borrowers.