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Advance me today..california desist order

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http://www.corp.ca.gov/ENF/pdf/2011/LendersInternational_DR.pdf

PRESTON DuFAUCHARD
California Corporations Commissioner
ALAN S. WEINGER
Deputy Commissioner
MARISA I. URTEAGA-WATKINS (SBN 236398)
Corporations Counsel
Department of Corporations
1515 K Street, Ste. 200
Sacramento, California 95814
Telephone: (916) 322-8782
Facsimile: (916) 445-6985
Attorneys for Complainant
CALIFORNIA CORPORATIONS COMMISSIONER
BEFORE THE DEPARTMENT OF CORPORATIONS
OF THE STATE OF CALIFORNIA
In the Matter of the Orders Issued to:
Lenders International dba www.advancemetoday.com,
Respondent.
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DESIST AND REFRAIN ORDER PURSUANT TO CALIFORNIA FINANCIAL CODE SECTION 23050; and
ORDER VOIDING TRANSACTIONS AND TO DISGORGE ALL CHARGES AND FEES PURSUANT TO CALIFORNIA FINANCIAL CODE SECTION 23060
Complainant, the Commissioner of the Department of Corporations (“Commissioner” or “Department”), is informed and believes, and based on such information and belief, finds as follows:
I.
FACTUAL BACKGROUND
Lenders International, doing business as www.advancemetoday.com (herein “ADVANCE”), is located in Kingstown, St. Vincent and the Grenadines with a mailing address of Post Office Box No. 1823, Pauls Avenue, Kingstown, St. Vincent 1823. ADVANCE transacts business in California,
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DESIST AND REFRAIN ORDER PURSUANT TO CALIFORNIA FINANCIAL CODE SECTION 23050; and ORDER
VOIDING TRANSACTIONS AND TO DISGORGE ALL CHARGES AND FEES PURSUANT TO CALIFORNIA
FINANCIAL CODE SECTION 23060

State of California - Department of Corporations
by way of the internet.
ADVANCE offers deferred deposit transactions or “payday loans” to California residents by
way of telephone numbers (888) 408-4394 and (888) 408-9716; facsimile number (888) 660-2984;
internet website address www.advancemetoday.com; and email addresses
[email]customersupport@advancemetoday.com[/email], [email]paymentarrangements@advancemetoday.com[/email], and
[email]collections@advancemetoday.com[/email].
A deferred deposit transaction is a written transaction whereby one person gives funds to
another person upon receipt of a personal check, and it is agreed that the personal check would not be
deposited until a later date. “Personal check”, as referenced in California Financial Code section 23001, includes “the electronic equivalent of a personal check,” such as an Automated Clearing
House (“ACH”) or debit card transaction. ADVANCE offers these payday loans at a very high annual percentage rate of interest to borrowers.
Since at least January, 2011, ADVANCE has engaged in the business of offering, originating, or making deferred deposit transactions in California, as defined by the California Deferred Deposit
Transaction Law (“CDDTL”), as set forth in California Financial Code sections 23000 et seq., whereby ADVANCE either defers depositing the customer’s personal check or defers making an
agreed upon ACH deduction until a specific date pursuant to a written agreement for a fee or other charge.
ADVANCE customers submit an online loan application through their website,
www.advancemetoday.com. Customers are required to provide their checking account information
from which ADVANCE eventually automatically debits payments, fees, and interest from the borrowers. ADVANCE, however, then uses customers’ banking account information to deduct
additional fees and charges beyond what customers were told they would expect to pay, sometimes in excess of more than double the amount of the original loan, and beyond what the CDDTL allows.
ADVANCE has not been issued a deferred deposit transaction originator license by the Commissioner pursuant to the CDDTL. As such, ADVANCE is not authorized to engage in payday
lending, or to offer, originate, or make a deferred deposit transaction, arrange a deferred deposit transaction for a deferred deposit originator, act as an agent for a deferred deposit originator, or assist

DESIST AND REFRAIN ORDER PURSUANT TO CALIFORNIA FINANCIAL CODE SECTION 23050; and ORDER
VOIDING TRANSACTIONS AND TO DISGORGE ALL CHARGES AND FEES PURSUANT TO CALIFORNIA
FINANCIAL CODE SECTION 23060



State of California - Department of Corporations
a deferred deposit originator in the origination of a deferred deposit transaction.
II.
CDDTL VIOLATIONS AND ORDERS
The Department is responsible for enforcing all provisions of the CDDTL, including the regulation of deferred deposit transactions.
A.
Desist and Refrain Order
The Commissioner is statutorily authorized to order any person to desist and refrain from engaging in violations of the CDDTL. California Financial Code section 23050 provides, in pertinent part:
Whenever, in the opinion of the commissioner, any person is engaged in the business of deferred deposit transactions, as defined in this division, without a license from the commissioner,…the commissioner may order that person…to desist and to refrain from engaging in the business or further violating this division…
The foregoing facts establish multiple violations of the CDDTL by Lenders International, doing business as www.advancemetoday.com, including engaging in the business of originating or offering to originate deferred deposit transactions without having first obtained a license to do so from the California Corporations Commissioner in violation of section 23005(a). The issuance of a Desist and Refrain Order, therefore, is necessary for the protection of consumers and is consistent with the purposes, policies, and provisions of the CDDTL.
Pursuant to California Financial Code section 23050, Lenders International, doing business as www.advancemetoday.com, is hereby ordered to desist and refrain from violating California Financial Code section 23005(a). This Order shall remain in full force and effect until further order of the Commissioner.
B.
Order Voiding California Deferred Deposit Transactions
California Financial Code section 23060, subdivision (a), states:
If any amount other than, or in excess of, the charges or fees permitted by this division is willfully charged, contracted for, or received, a deferred deposit transaction contract shall be void, and no person shall have any right
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DESIST AND REFRAIN ORDER PURSUANT TO CALIFORNIA FINANCIAL CODE SECTION 23050; and ORDER
VOIDING TRANSACTIONS AND TO DISGORGE ALL CHARGES AND FEES PURSUANT TO CALIFORNIA
FINANCIAL CODE SECTION 23060


State of California - Department of Corporations
to collect or receive the principal amount provided in the deferred deposit transaction, any charges, or fees in connection with the transaction.
Lenders International, doing business as www.advancemetoday.com, willfully violated provisions of the CDDTL by repeatedly charging California customers fees or charges without a license in violation of section 23005, including excess fees and charges, in conjunction with deferred deposit transactions. Because Lenders International, doing business as www.advancemetoday.com, willfully charged its customers unauthorized fees or charges, Lenders International, doing business as www.advancemetoday.com, is not entitled to collect or receive the principal amounts provided in those deferred deposit transactions, nor is it entitled to any of the charges or fees associated with the transactions.
Pursuant to California Financial Code section 23060, any and all deferred deposit transactions contracted with California customers or in the State of California by Lenders International, doing business as www.advancemetoday.com, are therefore void. Lenders International, doing business as www.advancemetoday.com, is hereby ordered to immediately return the principal amounts provided in any and all deferred deposit transactions contracted with California customers or in the State of California, and to disgorge any and all charges or fees received in conjunction with the deferred deposit transactions.
Dated: September 20, 2011
Sacramento, California
PRESTON DuFAUCHARD
California Corporations Commissioner
By: _____________________________
ALAN S. WEINGER
Deputy Commissioner
Enforcement Division




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