Source: https://www.paulhastings.com/publications-items/details?id=6cbd936e-2334-6428-811c-ff00004cbded
Timestamp: 2020-02-21 12:49:47
Document Index: 121767523

Matched Legal Cases: ['§ 22000', '§ 17200', '§ 17500', '§ 1750', '§ 22054', '§ 1912']

By Thomas P. Brown, Molly E. Swartz, Lawrence Kaplan & Lara Kaplan
[1] See DBO Denies Lending License Sought by Unregulated Point-of-Sale Financer and Issues Related Legal Opinion, (Dec 30, 2019).Cal. Fin. Code, § 22000 et seq.
[2] For example, Unfair Competition Law (Business and Professions Code § 17200), the False Advertising Act (Business and Professions Code § 17500), and the Consumer Legal Remedies Act (Civil Code §§ 1750-1784).
[3] Cal. Fin. Code § 22054 (emphasis added).
[4] California Department of Business Oversight-Statement of Issues, Sezzle and its Application available at: https://dbo.ca.gov/wp-content/uploads/sites/296/2019/12/Sezzle-Statement-of-Issues.pdf page 8
[5] Marchand, See Sections 1.2 (“Sezzle may unilaterally decide to change this Agreement from time to time, including your credit limit . . . .”); 2.1 (“Sezzle is a payment processing platform designed to allow Users to finance and buy products today and pay for them later, through a down payment followed by installment payments.”); 2.2 (referencing “your promise to pay the amount of the goods and services financed by . . . Sezzle” and “confirming the financing of any purchases through . . . Sezzle”); 2.6 (“We provide you with financing for your purchases.”); 3.1 (“You can use Sezzle to pay for purchases of goods and services from Sezzle Merchants . . . .”); 3.2 (“We may, at our discretion, impose limits on the amount of money you can use to purchase goods or services . . . .”); 4.1 (obtaining authorization to identify “business risks that may exist to Sezzle in offering financing to you”); and, separate “legal definition” for “Merchant Account” (“an account created with Sezzle by the Merchant for the purposes of accepting Sezzle as a payment option”).)
[6] Interestingly, DBO did not address whether offering interest-bearing accounts constitutes unlicensed banking.
[7] Sezzle User Agreement available at: https://legal.sezzle.com/user; Sezzle Merchant Agreement available at: https://legal.sezzle.com/merchant
[8] Cal Civ. Code § 1912.
[9] 21 Cal.3d 37 (1978).