Sezzle is down 15 percent after the buy now, pay later company announced that California regulators had denied it a lending licence, but it hopes to find a resolution
Sezzle is down 15 percent after the buy now, pay later company announced that California regulators had denied it a lending licence, but it hopes to find a resolution
2 January 2020
The California Department of Business Oversight said it had denied Sezzle a loan because the Minnesota-based company had engaged in "illegal unlicensed lending in the state".
Like Afterpay, Sezzle allows consumers to pay it 25 per cent of the purchase price at time of purchase and the rest in three equal instalments every fortnight.
Sezzle had contended it was engaged in purchasing credit sale contracts from merchants rather than issuing loans to consumers.
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