California Payday Loan Company Issued Penalty
California Corporations Commissioner Preston DuFauchard has determined that GVG Financial Services, Inc., has willfully violated the California Deferred Deposit Transaction Law.
GVG has been ordered to desist and refrain from violating the law, ordered to pay penalties and the loans in question have been declared void. GVG is a payday loan company operating eight stores in Orange and Los Angeles Counties.
The investigation by the Department found that GVG willfully violated sections 23023, 23024, 23035, and 23036 of the law by entering into fifteen (15) deferred deposit transactions with consumers, while existing no faxing payday loans were outstanding with those same consumers, failing to provide the customers written agreements and proper consumer notices.
Specifically, GVG failed to provide its customers with information, such as charges, fees, quick payday advance rates and the Department’s toll free number.
As part of this action, the Commissioner ordered that the 15 illegal GVG deferred deposit transactions, totaling $3,920, be voided. Furthermore, the Commissioner has determined that GVG shall be required to pay a penalty of $37,500 ($2,500 per violation) to the Department.
GVG’s main office is in Santa Ana and has stores in several surrounding communities. The instant cash loan violations occurred at GVG’s Garden Grove location. A separate order prohibiting unlicensed activity was issued to Cain Rodriguez-Silva, the manager of the Garden Grove store.
The reason this was deemed unlicensed activity was because the personal loans were not in the name of the company, but in the name of Rodriguez.