Credit Counseling CaliforniaCalifornia Credit Advice
State of California DFI: The CA Geldübertragungsgesetz does not cover credit advisory services.
New California Department of Financial Institutions ("CA DFI") Staff Opinion Letter makes it clear that non-profit credit advisory firms ("CCAs") that supply and make available California consumer credit facility programs ("DMPs") are not deemed to be involved in the "money transmission" and therefore do not need to be licenced under the recently adopted California Money Transfer Act ("CA MTA").
DFI's personnel assessment confirmed that for several reasons CA MTA exemptions do not apply to CAs. The DFI report states in particular: "under the Money Transmission Act. Furthermore, such authorisation would lead to a situation where a CCA is regulated by two systems and would lead to confusion of competence.
After all, the CCAs' cash transfer activity is a by-product of their credit advisory work. It is for those considerations that the rules in Section 1 of Section 14 of FC do not apply to the supply and provision of Californian consumer goods via a CCA, since they are in the general interest and do not need to be regulated.
CA MTA extended government regulations and licensing obligations for monetary issuers. DFI's personnel report is in line with the approaches of other government agencies. Whereas the state regulations for cash-in-transit and cash services companies vary from state to state, practically all states govern CMAs that offer LMPs within the framework of different legal regulations.
In addition, the Financial Crimes Enforcement Network ("FinCEN") of the U.S. Department of Treasury has declared that, in general, no CCA dealing with the transfer of monies in relation to a LMP will consider a cash sender as such for the purpose of the Department of Treasury rules found on 31 C.F.R. in § 103.11(uu).
He was at the front line in the DFI's efforts to implement the CA MTA and helps credit consulting firms navigate the labyrinth of national and state legislation that governs them.