DFPI reached a settlement with Florida-based point-of-sale lender Four Technologies, Inc. in which the company agreed to stop lending, pay $2,500 in penalties, obtain a license and recovering $13,065 in illegal charges.
These refunds represent the fees Four Technologies collected from consumers for transactions that the DFPI determined were illegal credit. Under the terms of the settlement, Four Technologies will only extend future loans to California residents after obtaining a license under the California Financing Law (CFL).
In late 2021, the DFPI reported the shift to Buy Now, Pay Later products and increasing consumer adoption of Buy Now, Pay Later products is under scrutiny from regulators. The DFPI remains at the forefront of oversight, clarifying late last year that BNPL products are loans and that the companies offering them must comply with California lending rules.
The DFPI continues to investigate other companies that offer buy-it-now, pay later products. In 2020, the DFPI (formerly the Department of Business Oversight) made similar settlements with Buy It Now and Pay Later companies Quadpay, Sezzle, Afterpay US and Klarna, Inc.
The DFPI licenses and regulates financial services, including federally chartered banks and credit unions, money transmitters, securities brokers, investment advisors, non-bank counselors, payday loans, mortgage lenders and servicers, trust companies, franchisors and more.