Buy Now, Pay Later Provider Cited for “Illegal Loans” in California
Infraction leads to customer refunds
I’ve written quite a bit recently about the growing Buy Now, Pay Later industry.
Today’s installment comes from an article by Jason Mikula in Fintech Business Weekly. Mikula notes that a California regulatory board has cited Buy Now, Pay Later operator Four for operating without a license.
California’s banking regulator, the DFPI, entered into a consent order with BNPL firm Four over what it described as the company’s “illegal loans” in the state.
While that language sounds serious, the order stems from the apparently minor infraction of Four operating in the state without a California Financing Law (CFL) license.
Per the consent order, Four will refund $13,065 in fees illegally charged to California consumers and pay a $2,500 administrative penalty to the DFPI.
Concurrent with the consent order, the DFPI granted Four’s application for a CFL license.
