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Montgomery v. GCFS, Inc.

California Court of Appeals, First District, Fifth Division

June 12, 2015

KHALEMA M. MONTGOMERY, Cross-complainant and Appellant,
v.
GCFS, INC., et al., Cross-defendants and Respondents.

[CERTIFIED FOR PARTIAL PUBLICATION[*]]

Superior Court of Alameda County, No. HG-12-640018, Hon. Delbert C. Gee, Judge.

Page 725

[Copyrighted Material Omitted]

Page 726

COUNSEL

Consumer Law Center, Fred W. Schwinn and Raeon R. Roulston, for Cross-complainant and Appellant.

Brighton Hushing-Kline, for Cross-defendants and Respondents GCFS, Inc. and Nancy Edrington.

Dennis Scott Carruthers, in pro. per., and for Cross-defendants and Respondents Mountain Lion Acquisitions, Inc., Andy Maxwell, and Mountain Lion Acquisitions, LLC.

Alto Litigation, Bahram Seyedin-Noor and Bryan Ketroser for Sunlan Corporation as Amicus Curiae on behalf of Cross-defendants and Respondents.

Page 727

OPINION

SIMONS, J.

Financial Code section 22340, subdivision (a) (section 22340(a))[1] provides that “A licensee may sell promissory notes evidencing the obligation to repay loans made by the licensee pursuant to this division or evidencing the obligation to repay loans purchased from and made by another licensee pursuant to this division to institutional investors, and may make agreements with institutional investors for the collection of payments or the performance of services with respect to those notes.”[2] After being sued for an unpaid consumer debt, Khalema M. Montgomery (appellant) filed a cross-complaint challenging the validity of her debt. She contends the sale of her debt from a licensed ...


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