Tn Re: STATE CF FLORIDA ] ly - BYU8. OFBICE OF FINANCIAL REGULATION PS LENDMARK FINANCIAL SERVICES, INC. Respondent. raat ~ 2 The State of Florida, Office of Financial Regulation, (“Office”) files this Administrative Complaint against LENDMARK FINANCIAL SERVICES, INC. (“Respondent”), alleging: 730] 1 Pursuant to sections 516.07 and 516.11, Florida Statutes, the Office is charged with administering and emforcing the provisions of Chapter 516, Florida Statutes, and conducting examinations and investigations to detemnine whether any provision of Chapter 516, Florida . Statutes, has been violated. 2. Pursuant to section 516.07, Florida Statutes, failure to comply with eny provision of Chapter 516, Florida Statutes or related rule constitutes grounds for disciplinary action. 3. At ell times material hereto, Respondent LENDMARK FINANCIAL SERVICES, INC, is or has been a Consumer Finance Company pursuant to Chapter 516, Florida Statutes, having been issued license number CF9900963. 4. At all times material, Respondent’s address of record is and has been 4761 Bayou Boulevard, Suite B-5, Pensacola, FL 32503. 5. The Office conducted an examination (#55588) of Respondent's business records and operations for the time period of January 1, 2012 through Avgust 31, 2014. (“examination periqd”). Page 1 of 9 COUNT I 6. The above general allegations 1 through 5 are hereby re-alleged and incorporated by reference as if fully stated herein. 7. As part of the examination, the Office reviewed records of loans entered into by the Respondent with consumers. 8. ‘The Office determined that Respondent used an inacourate-amount to determine estimated interest accrual on loans originated. during the examination period. 9. More specifically, prior to calculating the estimated finance charge on sixty-eight (68) loans, Respondent added a pre-paid finance charge ($25.00 Credit Investigation Fee) to the amnount financed to arrive at a “Loan Amount" which it then used to compute the estimated interest. 10, In contradiction to and in violation of section 516.031(1), Flotida Statutes, and Rule 69°V-160.111(2\(b), Florida Administrative Code, Respondent failed to ensure the original prineipel amount was the same as the amount financed. 11. Therefore, the Office is seeking an administrative fine of $17,000. COUNT E 12. The above general aliegations 1 through 5 are hereby re-alleged and incorporated by reference as if filly stated herein, 13. The Office determined that Respondent failed to accurately calculate the documentary stamp tax associated with renewed loans. 14. On multiple occasions, Respondent computed the documentary stamp taxes an the smount financed, rather than computing the documentary stamp taxes on the difference between the renewed loam amount and the peyott agnount. Page 2 of 9 15. Section 201.09(1), Florida Statutes, provides that “...a renewal note evidencing a term obligation which increases the unpaid balance of the original contract and obligation but which otherwise meets the exemption criteria of this section is taxable only on the face amount of the increase.” [in relevant part] 16. Jn contradiction to and in violation of section 516.031(3)(a)(5), Florida Statutes, and Rule 69V-160.111@)(b), Florida Administrative Code, Respondent failed to accurately calculate the documentary stamp tax associated with renewed loans. 17. ‘Therefore, the Office is seeking an administrative fine of $4,600. COUNT It 18. ‘The above general allegations 1 through 5 are hereby re-alleged and incorporated by reference as if fully stated herein. 19. The Office determined that Respondent charged an excessive blended interest rate on multiple consumer loans. 20. Section 516.031(1), Florida Statutes, provides that “the maximum interest rate shall be 30 peccent per annum, computed on the first $3,000 of the principal amount; 24 percent per anmim on that part of the principal amount exceeding $3,000 and up to $4,000; and 18 percent per annum on that part of the principal amount exceeding $4,000 and up to $25,000.” [in relevant part] 21. in contradiction to and in violation of section $16.031(1), Florida Stetutes, and Rule 69V-160.1112)(b), Florida Administrative Code, Respondent assessed an excessive blended interest rate on multiple consumer loans. 22. Therefore, the Office is seeking an administrative fine of $2,000. Page 3 of 9 COUNT TV 23. The above general allegations 1 through 5 are hereby re-alleged and incorporated by reference as if fully etated herein, 24. The Office determined that Respondent charged excessive Credit Life Insurance Premiums. 25. More specifically, Respondent sold Decreasing Term Credit Life Insurance underwritten by Minnesota Life that was at a rate above the prima facie rates provided by the Office of Insurance Regulation and Rule 690-163.010, Florida Administrative Code. 26. In contradiction to section 516.35, Florida Statutes, aad Rule 69V-160.111(2)v), Florida Administrative Code, Respondent charged excessive premiums on life insurance policies. 27. ‘Therefore, the Office is seeking an administrative fine of $1,200. COUNTY 28, The above general allegations 1 through 5 are hereby re-alleged and incorporated by reference as if fully stated herein. 29. The Office determined that Respondent failed to provide a sufficient rebate of uneamed credit insurance premiums when certain loans were refinanced or paid in fall. > 30, Tn contradiction to section 516.35, Florida Statutes, and Rule 690-170.010, Florida Administrative Code, Respondent failed to provide a sufficient rebate of uneamed credit insumnce premiums when certain loans were refinanced or paid in full. 31. Therefore, the Office is seeking an administrative fine of $100. COUNT VI 32. The ebove genoral allegations 1 through 5 are hereby re-alleged and incorporated by reference as if fully stated herein. Page 4 of 9 33. The Office determined that Respondent failed to release a UCC-1 filed with the Escambia County Clerk of Courts when a loan was refinanced, paid in full, and the collateral was not used on subsequent loans. 34. Th contradiction to section 516.15, Florida Statutes, and Rule 69V-160.111(2)(q), Florida Administrative Code, Respondent failed to file the appropriate release of a recorded lien on a consumer loan. 35. Therefore, the Office is seeking an administrative fine of $100, WHEREFORE, Respondent, LENDMARK FINANCIAL SERVICES, INC, is hereby notified that the Office intends to enter an Order imposing an administrative fine of $25,000. NOTICE OF RIGHTS The licensee is entitled to be represented by counsel or other qualified representative, The licensee also has the right to request a hearing pursuant to sections 120.569 and 120,57, Florida Stetztes. Such request must comply with Roles 28-106.2015 and 28-106.104, Florida Administrative Code. An Hlection of Proceeding form is attached for your convenience. Any such request must be filed as follows: By Mail or Fax OR By Hand Delivery Office of Financial Regulation Office of Financial Regulation P.O. Box 8050 General Counsel’s Office Tallahassee, FL 32314-8050 The Fletcher Building, Suite 118 Phone: (850) 410-9987 101 Bast Gaines Street Fax: (850) 410-9914 Tallahassee, FL 32399-0379 Phone: (850) 410-9987 TO PRESERVE THE RIGHT TO A HEARING, A WRITTEN RESPONSE MUST BE FILED WITH THE OFFICE OF FINANCIAL REGULATION WITHIN TWENTY-ONE (1) DAYS AFTER TRE RECEIPT OF THE ADMINISTRATIVE COMPLAINT. SAID RESPONSE MUST BE RECEIVED BY THE OFFICE NO LATER THAN 5:00 P.M. ON THE TWENTY-FIRST DAY ABTER THE RECEIPT OF THE ADMINISTRATIVE | COMPLAINT. A FAILURE TO TIMELY RESPOND IN WRITING WILL Page 5 of 9 CONSTITUTE A WAIVER OF THE LICENSEE’S RIGHT TO REQUEST A HEARING AND A BINAL ORDER MAY BE ENTERED WITECUT FURTHER NOTICE. You may not make an oral request for an administrative hearing. With regard to a written request, if you fail to follow the outlined procedure, your request may be dismissed. Any request for an administrative proceeding received prior to the date of this notice is deemed abandoned and to be considered, must be timely renewed in compliance with the procedure set forth above. Mediation of this matter purmant to section 120.573, Florida Statutes, is not available. DATED and SIGNED this_Z2 day of _Afareé __, 206. Office of Financial Regulation Fla. Bar No. 79063 101 B. Gaines Street, SSOT Tallahassee, FL 32399-0379 (850) 410-9887 Linjezivers@flofr.com Page 6 of 9 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and comect copy of the foregoing Administrative Complaint has been served by U.S. certified mail to LENDMARK FINANCIAL SERVICES, INC. at 4761 Bayou Boulevard, Suite B-5S, Pensacola, FLL 32503, on this Zz day of Loeb 20 {e, Linje Ri AL PLAT WL 7035 Ga3S1 3556 Page 7 of 9 STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION OFR Case No: 60668 LENDMARK FINANCIAL SERVICES 4761 BAYOU BLVD, SUITE 8-5 PENSACOLA, FL32503 ELECTION OF PROCEEDING | have received and read the Administrative Complaint, Including the Notice of Rights, filed by tH. Ofice & Financial Regulation (“Office”) regarding the above-referenced licensee. As the licensee or the rized representative of the licensee, | am requesting disposition as indicated below. (CHECK A BOX FOR NUMBER 4, 2, OR3) 1 [ ] | go not dispute any of the Office’s factual allegations and application of the law ag stated In the Administrative Compleint. Therefore, | do not request @ hearing in this matter. | understand that upon my waiving the right to a hearing, the Office may enter a final order Imposing a penalty as set forth in the Administrative Complaint. x ‘do not dispute any of the Office’s factual allegations but dispute the Office’s application of the law to those factual allegations, and request disposition of this matter pursuant to Section 120.57(2), Florida ‘Statutes. 1 request to (CHECK ONE OF THE FOLLOWING OPTIONS): [ ] Submit a written statement with supporting documentation to a Hearing Gfficer In Neu of a hearing; OR [] Inperson, attend a hearing conducted by a Heaying Officer; OR [ ] By telephone conference cali, attend a hearing conducted by a Hearing Officer. 3. [ ] 189 dispute one or more of the Office's factual allegations. | request a section 120.57(1), Florida Statutes, formal hearing before the Division of Administrative Hearings. Pursuant to the reauirerments of Rule 28- 106.2015(5){c), Florida Administrative Code, | am atts ama r TO PRESERVE THE RIGHT TO A HEARING, A RESPONSE MUST 8E AILED WITH THE OFFICE OF FINANCIAL REGULATION WITHIN TWENTY-ONE (21) DAYS OF THE RECEIPT OF THE ADMINISTRATIVE COMPLAINT. THE RESPONSE MUST BE RECEIVED BY THE OFFICE NO LATER THAN 5:00 P.M. ON THE TWENTY-FIRST DAY AFTER THE RECEIPT OF THE ADMINISTRATIVE COMPLAINT. ‘The address tor filing is: P.O. Box 8050, Tallahassee, Florida B2324.8050, if hand delivery is preferred, the physical address is: General Counsel's Office, The Fletcher Building, Sule 148, 101 £, Gulnas Street, Tollahasses, FL22399. Signature of Licensee or Mailing Address. Authorized Representative of Licensee Printed Name & Title Oty State Zp Date E-mail Address Telephone Number Fax Number Date Administrative Complaint was Recelved: Page 8 of 9 STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION OFR Case No: 60668 LENDMARK FINANCIAL SERVICES 4764 BAYOU BLYD, SUITE BS PENSACOLA, FL 32503 “*YOU ARE TO COMPLETE THE FOLLOWING ONLY IF YOU HAVE CHECKED NUMBER 3 ON THE PRECEDING PAGE. If you need more space, you may provide additional pages. As the licensee or the authorized representative of the licensee, i am disputing the following materlal facts: rpc Sighature of Licensee or Authorized Representative Date Page 9 of 9

Docket for Case No: 16-003865