Montgomery v. GCFS, Inc.
Opinion
Opinion
Simons, J.
Financial Code section 22340, subdivision (a) (section 22340(a)) provides that “A licensee may sell promissory notes evidencing the obligation to repay loans made by the licensee pursuant to this division or evidencing the obligation to repay loans purchased from and made by another licensee pursuant to this division to institutional investors, and may make agreements with institutional investors for the collection of payments or the performance of services with respect to those notes.” After being sued for an unpaid consumer debt, Khalema M. Montgomery (appellant) filed a cross-complaint challenging the validity of her debt. She contends the sale of her debt from a licensed finance lender to an entity that was neither licensed nor an institutional investor violated section 22340(a). We reject appellant’s interpretation of this provision and affirm.
BACKGROUND
In 2004, CashCall, Inc. (CashCall), issued a consumer credit account to appellant. CashCall was a licensed finance lender pursuant to the California Finance Lenders Law (§ 22000 et seq.; Finance Lenders Law). The debt appellant incurred from the credit account is governed by the Finance Lenders Law.