Dealer Services Corporation Informative - Unlicensed Lender Gets Exemption For Usury
SAN FRANCISCO, CALIFORNIA -- The California Department of Corporations, after giving Dealer Services Corporation a lenders license on May 27, 2009, come right back with an administrative warning on 4 weeks after DSC obtained their license.
The Dept. of Corporations states:
This Agreement is made with reference to the following facts:
A. Discover is a corporation in good standing, duly formed and existing pursuant to the laws of the State of Delaware, and authorized to conduct business in California. Discover has its principal place of business located at 1320 City Center Drive, Suite 100, Carmel, IN 46032.
HOW CAN DEALER SERVICES CORPORATION BE IN GOOD STANDING WHEN THEY WERE LOAN-SHARKING?
B. After Discover’s decision to submit an application to obtain a lenders license under the California Finance Lenders Law at Financial Code sections 22000 et seq. (“CFLL”), it came to the attention of the Commissioner that Discover has engaged in commercial lending in California prior to the issuance of a Finance Lenders License to Discover.
CAME TO HIS ATTENTION?!?! HOW, BY THE MILLIONS OF DOLLARS IN USURIOUS INTEREST COLLECTED BY DSC?
C. It is the intention and desire of the Parties to resolve this matter without the necessity of a hearing and/or other litigation.
NO HEARING?? OF COURSE THERE WAS A HEARING. IT WAS BETWEEN THE DSC ATTORNEYS PAYING MONEY TO DOC ATTORNEYS.
NOW, THEREFORE, for good and valuable consideration, and the terms and conditions set forth herein, the Parties agree as follows:
Dispute Regarding Lending Activity.
The Commissioner contends that Discover’s lending activities to California borrowers were in violation of the licensing requirements of the CFLL. Discover contends that Discover and its officers, directors, shareholders and employees did not willfully or knowingly engage in business as a finance lender without a license in violation of the CFLL.
Discover has not heretofore and is not now making any admission to any violation of the CFLL or any other wrongdoing. Discover intends by the settlement and compromise described herein merely to avoid further dispute with the Commissioner. The fact that Discover entered into this Agreement shall not be binding or admissible against Discover in any action(s) brought against Discover by third parties.
3. Settlement: Discover further agrees that it shall pay a settlement of Sixty thousand dollars ($60,000) to the California Department of Corporations (“Department”);