Manatt financial services senior advisor Jan Owen, financial services partner Charles Washburn, and financial services associate Taylor Steinbacher wrote an article for Law360 on new reports from the California Department of Business Oversight regarding the California Financing Law and the California Deferred Deposit Transaction Law. The reports found that California nonbank consumer lenders are moving away from short-term, small-dollar payday loans in favor of long-term installment loans with amounts over $2,500 to avoid interest rate caps. In the article, Owen, Washburn and Steinbacher detail the origins of this shift, why it matters, related litigation, legislative action and other key issues raised by these reports.
Read the article here.