DFPI initiates revocation of CFL lending license from Celsius Lending LLC
On August 19, 2022, the DFPI issued a notice to Celsius Lending LLC stating that the DFPI intends to revoke its license as a lender under the California Lending Act and immediately suspended its license pending resolution. of the revocation action. Following an ongoing DFPI regulatory review, the Department charges Celsius Lending with more than 55,000 CFL violations, including making unlicensed loans before obtaining a license, misleading advertising, making false statements to the commissioner during the course. licensing, contracts for illegal prepayment penalties, charging excess liquidation fees and various other illegal contractual terms and non-disclosures required to consumer borrowers from day 1 of its approval in August 2021 Celsius Lending reports to the DFPI that it has already voluntarily ceased all new lending activity as of the company’s July 13, 2022 filing for bankruptcy.
The DFPI’s order seeking the revocation of Celsius Lending’s CFL license is in addition to the DFPI’s August 8, 2022 order against Celsius Network and its CEO, Alex Mashinsky, for making material misrepresentations and omissions in offering Crypto Interest Accounts and without qualifying such accounts as securities under California law.
The DFPI licenses and regulates financial services, including state-chartered banks and credit unions, money issuers, stock brokers, investment advisers, non-bank installment lenders, moneylenders salary, mortgage lenders and managers, escrow companies, franchisors and more.