Oklahoma Administrative Code Title 160 - Department of Consumer Credit
Oklahoma Administrative Code Title 160 — Department of Consumer Credit (DCC)
Overview
Title 160 governs the Department of Consumer Credit (DCC) in Oklahoma. The DCC is the state regulatory agency responsible for supervising and regulating consumer credit transactions, including lending institutions, mortgage brokers, payday lenders, debt adjusters, and other financial service providers offering credit to consumers.
The purpose of the Department and its administrative code is to protect consumers from unfair, deceptive, or abusive lending practices while ensuring compliance with Oklahoma’s consumer credit laws.
Key Components of Title 160
1. Purpose and Authority
The DCC’s authority comes from the Oklahoma Consumer Credit Code (OCCC) and related statutes.
It regulates consumer credit businesses by issuing licenses, overseeing compliance, and enforcing rules to promote fair lending.
The DCC establishes administrative rules concerning licensing, operational standards, advertising, disclosures, fees, interest rates, and enforcement.
2. Licensing
Entities engaged in consumer credit activities — including lenders, mortgage brokers, debt adjusters, payday lenders, and debt management companies — must obtain and maintain licenses issued by the DCC.
The licensing process includes background checks, proof of financial responsibility, and compliance with operational rules.
Licenses are subject to renewal and can be revoked for violations.
3. Consumer Protection Rules
Title 160 includes requirements for:
Truthful Advertising and Disclosures: Licensees must clearly disclose terms, rates, fees, and rights in all consumer credit transactions.
Interest Rate Limits: The code sets maximum allowable interest rates and fees to prevent usury and predatory lending.
Recordkeeping: Licensees must maintain accurate records of transactions and reports.
Complaint Handling: Procedures for responding to consumer complaints and cooperating with DCC investigations.
4. Enforcement and Penalties
The DCC has investigative authority to ensure compliance, including audit rights and subpoena power.
Violations can result in administrative penalties, including fines, license suspension or revocation, and cease-and-desist orders.
Serious violations may be referred for criminal prosecution.
5. Consumer Rights
Consumers have protections against unfair or deceptive practices and can file complaints with the DCC.
The DCC may mediate disputes or take enforcement action on behalf of consumers.
Relevant Case Law
The Oklahoma courts have addressed various issues involving the Department of Consumer Credit’s regulatory authority, enforcement actions, and consumer protections.
1. Administrative Authority and Due Process
Courts have upheld the DCC’s authority to regulate and license consumer credit businesses, recognizing its role in protecting consumers.
For example, in cases where the Department suspended or revoked licenses, courts require that the DCC provide proper notice and opportunity for a hearing, consistent with due process. Administrative decisions must be supported by substantial evidence.
2. Usury and Interest Rate Enforcement
Oklahoma courts have enforced statutory limits on interest rates and fees, affirming the DCC’s role in preventing usurious practices.
In disputes over loan agreements exceeding lawful rates, courts have sometimes ruled loans void or have allowed penalties against lenders violating statutory caps.
3. Consumer Protection
Courts have reinforced the principle that licensees must comply with advertising and disclosure rules, and have found deceptive or misleading practices actionable under administrative or consumer protection statutes.
4. Judicial Review of DCC Actions
Judicial review of DCC administrative decisions is generally deferential, focusing on whether the Department acted within its statutory authority and whether its findings are supported by evidence.
Courts will reverse or remand decisions if the DCC acted arbitrarily, capriciously, or violated procedural safeguards.
Legal Principles Applied by Courts
Agency Deference: Courts defer to the DCC’s expertise in regulating consumer credit industries unless clear statutory violations occur.
Due Process: The DCC must follow fair procedures before imposing penalties or license suspensions.
Public Interest: Consumer protection is a paramount interest justifying regulatory oversight.
Substantial Evidence: Administrative findings must be supported by a reasonable evidentiary basis.
Practical Implications
Lenders and Credit Businesses must maintain proper licensing, adhere strictly to rate limits, disclosure, and advertising rules, and maintain transparent records.
Consumers should be aware of their rights and report suspected violations to the DCC.
Businesses facing disciplinary actions should engage legal counsel promptly to ensure due process and to contest improper actions.
Complaints and investigations often serve as catalysts for improved compliance and consumer protection.
Summary
The Oklahoma Department of Consumer Credit, under Title 160, regulates the consumer credit industry to protect the public from abusive lending and deceptive practices. Its rules govern licensing, operational standards, disclosures, and enforcement. Courts generally uphold the Department’s authority but emphasize procedural fairness and evidence-based decision-making.
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