On September 10, the Florida Office of Financial Regulation (OFR) entered a final order adopting a stipulation and consent agreement with a consumer finance company to resolve allegations that the company made consumer finance loans without obtaining the license required under the Florida Consumer Finance Act. The company neither admitted nor denied the OFR’s finding and agreed to pay a $107,250 administrative fine.
The order followed an OFR examination of the company’s business records and operations for the period from November 1, 2020, through November 30, 2025. According to the agreement, the OFR alleged that the company made consumer loans without first obtaining a required license, in violation of Fla. Stat. § 516.02(1).
To resolve the matter, the company agreed to cease and desist from future violations of the Florida Consumer Finance Act and pay a $107,250 administrative fine. The OFR also agreed to approve the company’s pending consumer finance license application and issue the license within one business day after entry of the final order.
Putting It Into Practice: The order is another example of state regulators focusing on whether financial services companies have obtained required licenses before beginning regulated activity (previously discussed here and here). The five-year examination period also highlights the potential exposure that can develop when licensing issues are not identified before operations begin. Consumer lenders and other financial services providers should review state licensing requirements before entering new markets and periodically confirm that their existing products and activities remain covered by appropriate licenses.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]
