STATE OF CALIFORNIA EDMUND G. BROWN JR., Governor

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2 STATE OF CALIFORNIA EDMUND G. BROWN JR., Governor BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY DEPARTMENT OF BUSINESS OVERSIGHT JAN LYNN OWEN COMMISSIONER OF BUSINESS OVERSIGHT Division of Corporations Edgar L. Gill, Jr., Senior Deputy Commissioner Financial Services Law Charles K. Lilly III, Deputy Commissioner Patricia R. Speight, Special Administrator Charles D. Agbonkpolor, Examination Manager

3 TABLE OF CONTENTS Page Introduction... 1 Executive Summary... 2 Historical Licensing and Loan Data... 3 Exhibit A - Balance Sheet... 7 Exhibit B - Analysis of and Receivables Outstanding... 8 Exhibit C - Statement of Income and Expenses... 9 Exhibit D - Analysis of Income Received Exhibit E - Made or Refinanced by Size Exhibit F - Made or Refinanced by Type of Security Exhibit G - Made or Refinanced by Rates Charged Exhibit H Schedule of Loan Activity Exhibit I Default Rates by Security Type and Size of Loan... 34

4 INTRODUCTION This annual report of licensees under the Law (Report) is a composite of annual reports submitted by lender and broker licensees for the calendar year ended December 31, Licensees annual reports were submitted in accordance with Financial Code sections 22159(a) and 22160, which state: (a) Each finance lender and broker licensee shall file an annual report with the commissioner, on or before the 15th day of March, giving the relevant information that the commissioner reasonably requires concerning the business and operations conducted by the licensee within the state during the preceding calendar year for each licensed place of business. The individual annual reports filed pursuant to this section shall be made available to the public for inspection except, upon request in the annual report to the commissioner, the balance sheet contained in the annual report of a sole proprietor or any other nonpublicly traded persons. "Nonpublicly traded person" for purposes of this section means persons with securities owned by 35 or fewer individuals. The report shall be made under oath and in the form prescribed by the commissioner The commissioner shall make and file annually with the Department of Business Oversight as a public record a composite of the annual reports and any comments on the reports that he or she deems to be in the public interest. The unaudited data was submitted by licensees in a format prescribed by the Department of Business Oversight (Department). While the format of the financial information presented follows that of conventional financial statements, the reader should be aware the data presented primarily is statistical in nature. This report and prior years reports can be found on the Department s website at California Department of Business Oversight 1

5 EXECUTIVE SUMMARY The number of all consumer loans originated in 2015 increased 25.6 percent from 2014, to 1,392,289 from 1,108,345. The aggregate principal amount increased 48.7 percent over the same period, to $34.1 billion from $22.9 billion. The increases were driven largely by loans secured by real property (essentially mortgage loans). Those loans grew in number 61.7 percent, to 78,073 from 48,271 in The aggregate principal of such loans in 2015 increased 55.3 percent, to $24.6 billion from $15.8 billion the prior year. Other highlights: The total number of unsecured consumer loans originated in 2015 increased percent from 2014, to 1,018,469 from 794,875. The aggregate principal amount of such loans increased 40.0 percent over the same period, to $5.6 billion from $4.0 billion. The number of unsecured consumer loans valued under $2,500 originated in 2015 increased 30.2 percent from 2014, to 450,224 from 345,796. The aggregate principal amount of such loans increased 28.1 percent over the same period, to $312.1 million from $243.5 million. Growth in auto title-secured consumer loans slowed in The number of such loans originated last year went up 9.5 percent, to 116,444 from 106,373 in By comparison, the year-overyear growth rate in the number of loans in 2014 was 16.2 percent. The aggregate principal of auto title loans in 2015 increased 10.9 percent from 2014, to $423.5 million from $381.9 million. That compared to a 14.1 percent growth rate in In 2015, more than half of the loans valued at $2,500 to $4,999 carried annual percentage rates (APR) of 100 percent or higher. Licensees originated 535,585 such loans, and 293,248 or 54.7 percent had APRs of 100 percent or higher. This was the largest category of consumer loans, as measured by number originated. California Department of Business Oversight 2

6 HISTORICAL LICENSING AND LOAN DATA The table below shows the number of Law licensees (including branches) at the end of each calendar year, and the number of license applications the Department received each year for the last 10 years. Year Licensed Companies Licensed Locations Applications ,580 6,369 1, ,185 5,018 1, ,155 4,776 1, ,056 4, ,026 4, ,261 4,327 1, ,730 4,964 1, ,378 5,618 1, ,358 7,358 2, ,889 7,577 2,358 California Department of Business Oversight 3

7 California Department of Business Oversight 4

8 Analysis of Made By CFLL Licensees for Last 10 Years Calendar Year of Made CALIFORNIA FINANCE LENDERS Principal of Made Average Size of Made Consumer Commercial All ,271,710 $ 232,654,056,610 $ 24,472 $ 105,661 $ 71, ,711,495 $ 17,151,868,159 $ 20,674 $ 121,161 $ 80, ,171,948 $ 174,302,457,184 $ 43,521 $ 106,650 $ 80, ,876,767 $ 165,639,476,215 $ 60,110 $ 108,137 $ 88, ,076,347 $ 139,166,897,599 $ 36,097 $ 47,604 $ 45, ,560,497 $ 114,778,811,783 $ 44,920 $ 44,805 $ 44, ,207,881 $ 89,287,544,941 $ 42,814 $ 39,932 $ 40, ,249,716 $ 110,013,356,592 $ 30,138 $ 54,460 $ 48, ,893,697 $ 202,350,867,103 $ 52,331 $ 76,851 $ 69, ,940,311 $ 315,492,843,743 $ 106,657 $ 63,574 $ 80,068 California Department of Business Oversight 5

9 California Department of Business Oversight 6

10 Exhibit A Consolidated Balance Sheet As of December 31, 2015 ASSETS Assets Cash $ 64,603, Investments 481,195, Loan Receivables 120,451, Other Receivables 1,216,672, Reserves and Withholds by Banks and Finance Companies 5,336, Real and Personal Property (Net) 156,488, Prepaid Expenses and Deferred Charges 8,151, Commissions Receivables 279, Other Assets 676,019, Total Assets $ 2,729,198, LIABILITIES AND NET WORTH Liabilities and Net Worth and Notes Payable from Third Parties $ 448,719, and Notes Payable from Parent Companies, Affiliates, etc. 535,855, Bonds, Debentures, and Certificates of Indebtedness 432,972, Accounts Payable 79,661, Dealers Reserves and Withholds 562, Accrued Taxes Other Than Income Tax 1,687, Reserve for Income Taxes 49,891, Credit Insurance Premiums Due Insurer 72, Other Liabilities and Accruals 763,872, Total Liabilities 2,313,295, Net Worth 415,902, Total Liabilities and Net Worth $ 2,729,198, California Department of Business Oversight 7

11 Exhibit B Analysis of and Receivables Outstanding As of December 31, 2015 CALIFORNIA FINANCE LENDERS LOAN RECEIVABLES Aggregate Balance % of Subtotal Consumer $ 26,192, Commercial 96,569, Subtotal $ 122,762, Less: Unearned Pre-Computed Charges 581,756 Allowance for Bad Debts 1,728,811 Net Loan Receivables $ 120,451,528 OTHER RECEIVABLES Sales Contracts $ 435,002, Leases (True Leases) 177,763, Factoring 3,946, Other 623,123, Subtotal $ 1,239,836, Less: Unearned Pre-computed Charges 13,657,633 Allowance for Bad Debts 9,506,946 Net Loan Receivables $ 1,216,672,265 California Department of Business Oversight 8

12 Exhibit C Statement of Income and Expenses For Calendar Year 2015 % of Total Income INCOME Gross Income from and Brokered $ 11,056, Gross Income from All Other Businesses and Sources 568,556, Total Gross Income $ 579,613, EXPENSES Loss on Receivable $ 3,301, Professional Audit and Accounting Services 1,232, Insurance and Bond Premiums 1,120, Legal Services and Expenses 1,348, Occupancy Expenses 4,985, Provision for Bad Debt Allowance 7,495, Salaries and Bonuses: Employees 46,848, Salaries and Bonuses: Owners, Partners, Executives 894, Depreciation 35,420, License Fees and Taxes 1,206, Telephone and Utilities 1,442, Advertising and Promotions 2,291, Other Expenses 420,787, Total Expenses Before Interest and Income Taxes $ 528,375, Income or Loss Before Interest and Income Taxes $ 51,237, Less: Interest Paid to Bona Fide Third Parties 22,727, Interest Paid to Parent Company, Affiliates and Others 7,787, Income or Loss before Income Taxes $ 20,721, Less: Provision for Income Taxes 9,993, Net Income or (Loss) $ 10,728, California Department of Business Oversight 9

13 Exhibit D Analysis of Income Received For Calendar Year 2015 CFL LOANS AND CFL-BROKERED LOANS Under $2,500 $2,500 and Over Total CONSUMER LOANS Charges Earned on $ 82,795 $ 4,601,091 $ 4,683,886 Collection from Charged-Off Accounts ,219 27,901 Income from Credit Insurance Other Insurance Commissions 1 1,181 1,182 Administrative Fees 3, , ,176 Commissions from Loan Brokering 1,263 85,748 87,011 Other Income 2, , ,976 Income from Consumer $ 91,056 $ 5,004,221 $ 5,095,277 COMMERCIAL LOANS Charges Earned on $ 5,251,487 Collection from Charged-Off Accounts 11,947 Income from Credit Insurance 568 Other Insurance Commissions 128 Commissions from Loan Brokering 32,587 Other Income 664,815 Income from Commercial $ 5,961,532 Total Income from All $ 11,056,809 ALL OTHER BUSINESS AND SOURCES Charges Earned on $ 108,880,334 Other Interest or Return on Investments 11,276,294 Collection from Charged-Off Accounts 2,576,194 Income from Credit Insurance 2,867 Other Insurance Commissions 112,857 Other Income Relating to 445,707,705 Total Income from All Other Business and Sources $ 568,556,251 California Department of Business Oversight 10

14 Exhibit E Made or Refinanced By Size Size of Principal CONSUMER LOANS $ 499 or less 198, $ 37, to 1, , , ,000 to 2,499 12, , ,500 to 4, , ,647, ,000 to 9, , ,044, ,000 or more 227, ,050, Total Consumer Made 1,392, $ 34,071, COMMERCIAL LOANS $5,000 or more 1,879, $ 198,582, Total Commercial Made 1,879, $ 198,582, Total Made, All Categories 3,271,710 $ 232,654,057 California Department of Business Oversight 11

15 Exhibit F Made or Refinanced By Type of Security Type of Security Principal CONSUMER LOANS LOANS UNDER $2,500 Unsecured 450, $ 312, Personal Property 1, , Automobiles & Other Motor Vehicles , Auto Title 1, , Wage Assignments Other Security 10, , Total Made 463, $ 329, LOANS OF $2,500 TO $4,999 Unsecured 411, $ 1,258, Personal Property 9, , Automobiles & Other Motor Vehicles 8, , Auto Title 97, , Wage Assignments Other Security 8, , Total Made 535, $ 1,647, LOANS OF $5,000 TO $9,999 Unsecured 117, $ 708, Personal Property 5, , Automobiles & Other Motor Vehicles 26, , Auto Title 15, , Wage Assignments Real Property , Other Security Total Made 165, $ 1,044, LOANS OF $10,000 AND MORE Unsecured 38, $ 3,311, Personal Property 17, , Automobiles & Other Motor Vehicles 88, ,327, Auto Title 2, , Wage Assignments Real Property 77, ,599, Other Security 2, , Total Made 227, $ 31,050, Total Consumer Made 1,392,289 $ 34,071,727 California Department of Business Oversight 12

16 Exhibit F (Continued) Made or Refinanced By Type of Security Type of Security Principal ALL CONSUMER LOANS Unsecured 1,018, $ 5,590, Personal Property 34, , Automobiles & Other Motor Vehicles 123, ,557, Auto Title 116, , Wage Assignments Real Property 78, ,601, Other Security 21, , Total Consumer Made 1,392, $ 34,071, California Department of Business Oversight 13

17 Exhibit F (Continued) Made or Refinanced By Type of Security Type of Security Principal COMMERCIAL LOANS Unsecured 119, $ 11,712, Personal Property 34, ,862, Automobiles & Other Motor Vehicles 1,433, ,453, Business Equipment 35, ,761, Real Property 12, ,658, Other Security 244, ,134, Total Commercial Made 1,879, $ 198,582, Total Made, All Categories 3,271,710 $ 232,654,057 California Department of Business Oversight 14

18 Exhibit G Made or Refinanced By Interest Rates Charged Rates Charged Principal CONSUMER LOANS LOANS UNDER $2,500 Step Rate: 2.5, 2, 1.5, 1% per month 236, $ 66, Alternate Rate: 1.6% per month Federal Reserve Bank Rate plus 10% Other Rates: Up to APR 12, , to APR 10, , to APR 3, , to APR 3, , to APR 8, , to APR 25, , to APR 162, , to APR or More APR Total Made 463, $ 329, LOANS OF $2,500 TO $4,999 Up to APR 8, $ 30, to APR 5, , to APR 3, , to APR 6, , to APR 49, , to APR 92, , to APR 14, , to APR 61, , or More APR 293, , Total Made 535, $ 1,647, California Department of Business Oversight 15

19 Exhibit G (Continued) Made or Refinanced By Interest Rates Charged Rates Charged Principal LOANS OF $5,000 TO $9,999 Up to APR 7, $ 55, to APR 2, , to APR 6, , to APR 13, , to APR 34, , to APR 41, , to APR 7, , to APR 17, , or More APR 34, , Total Made 165, $ 1,044, LOANS OF $10,000 AND MORE Up to APR 175, $ 29,721, to APR 14, , to APR 14, , to APR 4, , to APR 2, , to APR 7, , to APR , to APR 6, , or More APR 1, , Total Made 227, $ 31,050, Total Consumer Made 1,392,289 $ 34,071,727 California Department of Business Oversight 16

20 Exhibit G (Continued) Made or Refinanced By Interest Rates Charged Rates Charged Principal COMMERCIAL LOANS Up to APR 1,797, $ 193,767, to APR 22, ,517, to APR 5, , to APR 7, , to APR 4, , to APR 3, , to APR 23, , to APR 5, , or More APR 9, ,408, Total Commercial Made 1,879, $ 198,582, Total Made, All Categories 3,271,710 $ 232,654,057 California Department of Business Oversight 17

21 Exhibit G (Continued) Made or Refinanced By Interest Rates Charged Rates Charged Principal CONSUMER LOANS LOANS UNDER $2,500 UNSECURED LOANS Step Rate: 2.5, 2, 1.5, 1% per month 235, $ 65, Alternate Rate: 1.6% per month $ Federal Reserve Bank Rate plus 10% Other Rates: Up to APR 6, $ 7, to APR 6, , to APR 2, , to APR 2, , to APR 8, , to APR 25, , to APR 162, , to APR or More APR Total Made 450, $ 312, LOANS OF $2,500 TO $4,999 Up to APR 3, $ 10, to APR , to APR 2, , to APR 3, , to APR 46, , to APR 83, , to APR 10, , to APR 24, , or More APR 237, , Total Made 411, $ 1,258, California Department of Business Oversight 18

22 Exhibit G (Continued) Made or Refinanced By Interest Rates Charged Rates Charged Principal LOANS OF $5,000 TO $9,999 UNSECURED LOANS Up to APR 1, $ 13, to APR , to APR 1, , to APR 8, , to APR 26, , to APR 35, , to APR 5, , to APR 9, , or More APR 28, , Total Made 117, $ 708, LOANS OF $10,000 AND MORE Up to APR 20, $ 3,047, to APR 1, , to APR , to APR 1, , to APR 1, , to APR 6, , to APR , to APR 5, , or More APR Total Made 38, $ 3,311, Total Unsecured Consumer Made 1,018,469 $ 5,590,509 California Department of Business Oversight 19

23 Exhibit G (Continued) Made or Refinanced By Interest Rates Charged Rates Charged Principal CONSUMER LOANS LOANS UNDER $2,500 PERSONAL PROPERTY (HOUSEHOLD ITEMS) Step Rate: 2.5, 2, 1.5, 1% per month $ Alternate Rate: 1.6% per month $ Federal Reserve Bank Rate plus 10% Other Rates: Up to APR $ to APR to APR to APR to APR to APR to APR to APR or More APR Total Made 1, $ 2, LOANS OF $2,500 TO $4,999 Up to APR 2, $ 10, to APR , to APR to APR to APR 1, , to APR 4, , to APR to APR or More APR Total Made 9, $ 35, California Department of Business Oversight 20

24 Exhibit G (Continued) Made or Refinanced By Interest Rates Charged Rates Charged Principal LOANS OF $5,000 TO $9,999 PERSONAL PROPERTY (HOUSEHOLD ITEMS) Up to APR 2, $ 14, to APR , to APR to APR , to APR 1, , to APR , to APR to APR or More APR Total Made 5, $ 35, LOANS OF $10,000 AND MORE Up to APR 17, $ 530, to APR , to APR to APR to APR to APR to APR to APR or More APR Total Made 17, $ 537, Total Personal Property Consumer Made 34,450 $ 611,897 California Department of Business Oversight 21

25 Exhibit G (Continued) Made or Refinanced By Interest Rates Charged Rates Charged Principal CONSUMER LOANS LOANS UNDER $2,500 AUTOMOBILES AND OTHER MOTOR VEHICLES Step Rate: 2.5, 2, 1.5, 1% per month $ Alternate Rate: 1.6% per month $ Federal Reserve Bank Rate plus 10% Other Rates: Up to APR $ to APR to APR to APR to APR to APR to APR to APR or More APR Total Made $ 1, LOANS OF $2,500 TO $4,999 Up to APR $ 1, to APR , to APR , to APR to APR 2, , to APR 4, , to APR to APR or More APR Total Made 8, $ 31, California Department of Business Oversight 22

26 Exhibit G (Continued) Made or Refinanced By Interest Rates Charged Rates Charged Principal LOANS OF $5,000 TO $9,999 AUTOMOBILES AND OTHER MOTOR VEHICLES Up to APR 3, $ 24, to APR 2, , to APR 5, , to APR 4, , to APR 6, , to APR 5, , to APR to APR or More APR Total Made 26, $ 196, LOANS OF $10,000 AND MORE Up to APR 58, $ 1,878, to APR 11, , to APR 13, , to APR 2, , to APR , to APR 1, , to APR to APR or More APR , Total Made 88, $ 2,327, Total Automobiles & Other Motor Vehicles Consumer Made 123,801 $ 2,557,584 California Department of Business Oversight 23

27 Exhibit G (Continued) Made or Refinanced By Interest Rates Charged Rates Charged Principal CONSUMER LOANS LOANS UNDER $2,500 AUTO TITLE LOANS Step Rate: 2.5, 2, 1.5, 1% per month $ Alternate Rate: 1.6% per month $ Federal Reserve Bank Rate plus 10% Other Rates: Up to APR $ to APR to APR to APR to APR to APR to APR to APR or More APR Total Made 1, $ 1, LOANS OF $2,500 TO $4,999 Up to APR $ 2, to APR to APR to APR to APR to APR to APR 4, , to APR 36, , or More APR 55, , Total Made 97, $ 289, California Department of Business Oversight 24

28 Exhibit G (Continued) Made or Refinanced By Interest Rates Charged Rates Charged Principal LOANS OF $5,000 TO $9,999 AUTO TITLE LOANS Up to APR $ to APR to APR to APR to APR to APR , to APR 2, , to APR 7, , or More APR 5, , Total Made 15, $ 101, LOANS OF $10,000 AND MORE Up to APR $ 1, to APR , to APR to APR to APR to APR to APR , to APR 1, , or More APR , Total Made 2, $ 30, Total Auto Title Consumer Made 116,444 $ 423,533 California Department of Business Oversight 25

29 Exhibit G (Continued) Made or Refinanced By Interest Rates Charged Rates Charged Principal CONSUMER LOANS LOANS UNDER $2,500 WAGE ASSIGNMENT Step Rate: 2.5, 2, 1.5, 1% per month $ Alternate Rate: 1.6% per month $ Federal Reserve Bank Rate plus 10% Other Rates: Up to APR $ to APR to APR to APR to APR to APR to APR to APR or More APR Total Made $ LOANS OF $2,500 TO $4,999 Up to APR $ to APR to APR to APR to APR to APR to APR to APR or More APR Total Made $ California Department of Business Oversight 26

30 Exhibit G (Continued) Made or Refinanced By Interest Rates Charged Rates Charged Principal LOANS OF $5,000 TO $9,999 WAGE ASSIGNMENT Up to APR $ to APR to APR to APR to APR to APR to APR to APR or More APR Total Made $ LOANS OF $10,000 AND MORE Up to APR $ to APR to APR to APR to APR to APR to APR to APR or More APR Total Made $ Total Wage Assignment Consumer Made 0 $ 0 California Department of Business Oversight 27

31 Exhibit G (Continued) Made or Refinanced By Interest Rates Charged Rates Charged Principal LOANS OF $5,000 TO $9,999 REAL PROPERTY Up to APR $ 1, to APR to APR to APR to APR to APR to APR to APR or More APR Total Made $ 1, LOANS OF $10,000 AND MORE Up to APR 77, $ 24,295, to APR , to APR , to APR to APR to APR to APR to APR or More APR Total Made 78, $ 24,599, Total Real Property Consumer Made 78,073 $ 24,601,160 California Department of Business Oversight 28

32 Exhibit G (Continued) Made or Refinanced By Interest Rates Charged Rates Charged Principal CONSUMER LOANS LOANS UNDER $2,500 OTHER SECURITIES Step Rate: 2.5, 2, 1.5, 1% per month $ Alternate Rate: 1.6% per month $ Federal Reserve Bank Rate plus 10% Other Rates: Up to APR 5, $ 4, to APR 4, , to APR to APR to APR to APR to APR to APR or More APR Total Made 10, $ 12, LOANS OF $2,500 TO $4,999 Up to APR 1, $ 5, to APR 3, , to APR to APR 2, , to APR to APR to APR to APR or More APR Total Made 8, $ 30, California Department of Business Oversight 29

33 Exhibit G (Continued) Made or Refinanced By Interest Rates Charged Rates Charged Principal LOANS OF $5,000 TO $9,999 OTHER SECURITIES Up to APR $ to APR to APR to APR to APR to APR to APR to APR or More APR Total Made $ LOANS OF $10,000 AND MORE Up to APR 2, $ 240, to APR , to APR to APR to APR to APR to APR to APR or More APR Total Made 2, $ 243, Total Other Securities Consumer Made 21,052 $ 287,044 California Department of Business Oversight 30

34 Exhibit H Schedule of Loan Activity Calendar Year 2015 Unsecured Personal Property Consumer Serviced Outstanding Prior Year at 12/31/2014 1,820,356 $ 2,163,914 34,556 $ 376,518 Outstanding at Year End 12/31/ ,724 3,004,777 36, ,009 with One or More Past Due Payments Which are Past due 30 or More Days at 12/31/ , ,312 1,008 31,593 During Calendar Year 2015: Charged One or More Late Fees 253,391 27,656 Total Late Fees Collected 628,847 9, ,800 2,293 Total Repossessions Conducted Total Reinstated 5,349 0 Total Collateral Redeemed 2 10 Total Collateral Sales Resulting in a Deficiency Balance Total Collateral Sales Resulting in a Surplus Balance Total Charge-Offs 124, ,549 2,794 5,589 Average Contracted Term of Loan (In Months) California Department of Business Oversight 31

35 Exhibit H (Continued) Schedule of Loan Activity For Calendar Year 2015 Automobiles and Other Motor Vehicles Auto Title Consumer Serviced Outstanding Prior Year at 12/31/2014 1,658,170 $ 28,079, ,530 $ 367,059 Outstanding at Year End 12/31/2015 2,010,243 31,905, , ,929 with One or More Past Due Payments Which are Past due 30 or More Days at 12/31/ ,120 2,130,019 19,552 64,715 During Calendar Year 2015: Charged One or More Late Fees 448,291 72,443 Total Late Fees Collected 533,599 31, ,602 2,610 Total Repossessions Conducted 39,690 16,989 Total Reinstated 6,578 5,115 Total Collateral Redeemed 6,638 12,015 Total Collateral Sales Resulting in a Deficiency Balance 26, ,891 10,357 23,244 Total Collateral Sales Resulting in a Surplus Balance ,470 Total Charge-Offs 38, ,101 26,581 48,946 Average Contracted Term of Loan (In Months) California Department of Business Oversight 32

36 Exhibit H (Continued) Schedule of Loan Activity For Calendar Year 2015 Real Property Other Security Consumer Serviced Outstanding Prior Year at 12/31/ ,136 $ 11,928,415 29,528 $ 535,673 Outstanding at Year End 12/31/ ,308 13,602,478 31, ,184 with One or More Past Due Payments Which are Past Due 30 or More Days at 12/31/2015 2, , ,069 During Calendar Year 2015: Charged One or More Late Fees 8,041 6,663 Total Late Fees Collected 21,469 3,135 12, Total Foreclosures/ Repossessions Conducted Total Reinstated Total Collateral Redeemed Total Collateral Sales Resulting in a Deficiency Balance 87 8, ,478 Total Collateral Sales Resulting in a Surplus Balance 31 3, Total Charge-Offs , ,033 Average Contracted Term of Loan (In Months) California Department of Business Oversight 33

37 Exhibit I Default Rates by Security Type and Size of Loan As of December 31, 2015 CONSUMER LOANS UNDER $2,500 Unsecured Personal Property Automobiles & Other Motor Vehicles Auto Title Total # of Charge-Offs 34, Total # of Outstanding 274, Current 236, Payment Past Due 13, Payments Past Due 6, or More Payments Past Due 19, Wage Assignments Other Security Totals Total # of Charge-Offs ,781 Total # of Outstanding 0 11, ,993 Current 0 10, ,370 1 Payment Past Due ,772 2 Payments Past Due ,399 3 or More Payments Past Due ,452 CONSUMER LOANS $2,500 to $4,999 Unsecured Personal Property Automobiles & Other Motor Vehicles Auto Title Total # of Charge-Offs 77,398 1, ,721 Total # of Outstanding 305,621 1,930 2,203 89,964 Current 258,517 1,618 1,832 65,006 1 Payment Past Due 18, ,590 2 Payments Past Due 9, ,271 3 or More Payments Past Due 19, ,097 Wage Assignments Other Security Totals Total # of Charge-Offs ,766 Total # of Outstanding 0 10, ,903 Current 0 9, ,474 1 Payment Past Due ,074 2 Payments Past Due ,589 3 or More Payments Past Due ,766 California Department of Business Oversight 34

38 Exhibit I (Continued) Default Rates by Security Type and Size of Loan As of December 31, 2015 CONSUMER LOANS $5,000 to $9,999 Unsecured Personal Property Automobiles & Other Motor Vehicles Auto Title Total # of Charge-Offs 11, ,155 4,145 Total # of Outstanding 69, ,650 15,555 Current 62, ,075 11,253 1 Payment Past Due 2, ,765 2,725 2 Payments Past Due 1, or More Payments Past Due 2, , Wage Assignments Real Property Other Security Totals Total # of Charge-Offs ,331 Total # of Outstanding ,269 Current ,795 1 Payment Past Due ,364 2 Payments Past Due ,731 3 or More Payments Past Due ,379 CONSUMER LOANS $10,000 or More Unsecured Personal Property Automobiles & Other Motor Vehicles Auto Title Total # of Charge-Offs 2, , Total # of Outstanding 35, ,446 1,865,738 2,121 Current 33, ,509 1,762,603 1,557 1 Payment Past Due 1, , Payments Past Due , or More Payments Past Due ,460 14, Wage Assignments Real Property Other Security Totals Total # of Charge-Offs ,059 Total # of Outstanding 0 31,876 11,549 2,369,823 Current 0 29,816 11,326 2,242,855 1 Payment Past Due ,601 2 Payments Past Due ,985 3 or More Payments Past Due ,382 California Department of Business Oversight 35

39 California Department of Business Oversight Toll-Free TTY Online To request additional copies of this report, please call our toll-free number, or California Department of Business Oversight 36