Growth Resource Group v. DuFauchard
Appellant Growth Resource Group, Inc. (GRG) makes small, short-term consumer loans, using borrowers vehicles as collateral. An investigation in 1997 by respondent, the California Corporations Commissioner, revealed GRG was engaged in illegal loan practices. Among other things, GRG had added excessive administrative fees and premiums for collateral insurance to the principal of numerous loans, causing them to exceed $2,500, which allowed GRG to charge interest above the statutorily regulated rate for loans under $2,500. For those loans, even after the insurance GRG placed was cancelled, thereby reducing the principal of a loan to the regulated interest rate, GRG had failed to recalculate the loan to reduce the interest rate. The Commissioner demanded GRG recalculate the loan principal, issue refunds to affected borrowers, and report back to the Commissioner or face administrative discipline. GRG failed to comply with the agreement and the Commissioner filed an administrative action to enforce the agreement and revoke GRGs licenses. An administrative law judge agreed GRG breached the settlement agreement and the Commissioner imposed discipline. GRG filed a petition seeking a writ of mandate (Code Civ. Proc., 1094.5) to overturn the administrative decision. The trial court found no merit in GRGs contentions, and denied the petition, and GRG appealed. Court affirm.
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