California Rule Shows Increased Scrutiny In Commercial Financing

By: Charles E. Washburn, Jr. | Scott M. Pearson | Eric M. Knight
– Law360

Manatt Consumer Financial Services Leader Scott Pearson, Partner Charles Washburn and Associate Eric Knight authored an article for Law360 detailing the increased regulatory scrutiny the commercial financing industry is facing in California and beyond.

In the article, the authors discussed the California Department of Financial Protection and Innovation’s finalized rule prohibiting commercial financing providers from engaging in unfair, deceptive, or abusive acts or practices, and requiring such companies to file annual reports with the agency. They noted that although California is leading the way in introducing heightened regulations, this trend will have national implications.

“As this trend continues, commercial financing companies will need to make significant operational changes … [and] stay up to speed on these developments, which could shape the future of the commercial financing industry,” they added.

Law360 subscribers can read the full article here.

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