July 22, 2008 | Posted By Sheppard Mullin | permalink
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Non-California Loan Company Could Not Enforce Nevada Choice Of Law Provision To Avoid California Finance Lenders Law

Question: May a non-California consumer loan company enforce a non-California choice of law provision in its loan agreements to avoid application of the California Financial Lenders Law?

Answer: No, according to the Fourth District court of appeal in Brack v. Omni Loan Company, Ltd. (D049198), decided June 17, 2008.  There, a Nevada loan company unsuccessfully sought a ruling from the Commissioner of Corporations to make loans in California to nonresident members of the military without complying with California's Finance Lenders Law.  Nonetheless, it  opened various loan offices in California to make such loans.  (When California residents entered, they were directed to a computer to go on line to contact an affiliate.)

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July 10, 2008 | Posted By Sheppard Mullin | permalink
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Consumer Cannot Challenge Credit Card Agreement Under Consumer Legal Remedies Act

Question: May a consumer challenge a credit card agreement as "unconscionable" under the Consumer Legal Remedies Act?

Answer: No, according to the Fourth District court of appeal in Ball v. FleetBoston Financial Corporation (G038894), decided June 5, 2008.

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