Debt Pay 1

Agency: Department of Corporations
Description: On April 10, 2013 the Department of Corporations filed a Desist and Refrain Order against Debt Pay 1 and its principal.

Beginning in or about September 2011, Debt Pay 1 and the Defendant engaged in the business of receiving money from consumers in California and other states for the purpose of offering debt management services to consumers. After the consumer pays an upfront fee to enroll in the program, the Defendant obtains written authorization to withdraw funds from the consumer's bank account or online Paypal account.

The Commissioner finds that the Defendant acted as a prorater when, for compensation, it engaged in the business of receiving consumer funds for the purpose of distributing such funds to creditors in order to pay consumers' debt obligations.
The Defendant has never had a license to perform prorater services in the State of California.

Based on the foregoing findings, the Commissioner of Corporations is of the opinion that the Defendant has engaged in prorater services in this state without a license. The Defendant is hereby ordered to desist and refrain from engaging in prorater services unless and until duly licensed under the Check Sellers, Bill Payers and Proraters Law or unless exempt.

This order is necessary, in the public interest, for the protection of investors and consistent with the purposes, policies and provisions of the Check Sellers, Bill Payers and Proraters Law.

Upon entry the Order was finalized.


Date of Action: 4/10/2013