IN “FIRST OF ITS KIND” CONSENT ORDER CA DFPI TO REGULATE INCOME SHARE AGREEMENT SERVICER

On August 5th, the California Department of Financial Protection and Innovation (“DFPI”) entered into a consent order with a fintech that provides software to schools and other institutions to enable the institutions to issue income share agreements (“ISAs”). The fintech also services the ISAs for the institutions. Under the consent order, the DFPI granted conditional approval for the fintech to obtain a student loan servicer license under the California Student Loan Servicing Act (“SLSA”). The fintech had voluntarily applied for the servicer license in April. Read More