What kinds of penalties will be assessed for violations?
Section 16(b) of the Act allows the Supervisor to assess a civil penalty of not more than $3,000 for all violations of a similar nature, and not more than $15,000 for knowing violations. Knowing violations are violations that a licensee does in deliberate disregard for the law, such as repeat violations. Usually there is no fine assessed for minor violations if promptly corrected. The Supervisor may also order a licensee to refund to a borrower any fees collected in excess of the Mini-Codes 5% points limitation, or for any other overcharges. A license can be revoked for very serious violations, such as fraud. All licensees will be given an opportunity for a hearing before penalties are assessed.
