Ann: Regulatory Update - California, US, page-7

From the press release:
The California Department of Business Oversight (DBO) today denied an application by point-of-sale lender Sezzle, Inc., to make loans under the California Financing Law (CFL) after determining the Minnesota-based fintech company had engaged in illegal unlicensed lending in the state.

The DBO concluded the purported credit sales made by Sezzle’s merchant partners were not bona fide but, rather, were structured to evade otherwise applicable consumer protections. In addition, the DBO found that Sezzle’s extensive role in its merchants’ transactions and pre-existing relationship with some consumers who were parties to the purported credit sales showed that Sezzle was making loans under California law.

https://dbo.ca.gov/2019/12/30/dbo-denies-lending-license-sought-by-unregulated-point-of-sale-financer-and-issues-related-legal-opinion/