The California Department of Business Oversight (DBO) today announced a settlement with point-of-sale lender Sezzle in which the company agreed to stop making illegal loans, refund $282,000 to California consumers and pay a $28,200 penalty.
The refunds represent all of the fees Sezzle has collected from almost 17,000 California consumers in transactions the DBO concluded were illegal loans. Under the settlement, Sezzle will only make future loans or extensions of credit to California residents under a California Financing Law (CFL) license.
The DBO continues to investigate other companies in the point-of-sale lending industry. Issuance of a lending license to such a company does not mean the Department has concluded that company’s prior activities or products, or the prior activities or products of an affiliate of that company, complied with the law.
