Business ProfileforFanfaire, Inc.

Gov. Action
December 12, 2022 The following describes a settlement that has been formally brought by a government agency. The Department of Financial Protection and Innovation alleges, and charges as follows:

Fanfaire manages fan clubs for fans of the Los Angeles Rams football team. It sells stadium seat licenses (SSLs) for football games and events in SoFi stadium. Some license purchasers chose to finance their purchase of SSLs over time. These financing agreements are made with Fanfaire using simple interest retail installment contracts.

he Department of Financial Protection and Innovation (Department) received a complaint from a Los Angeles Rams SSL holder which alleged that the complainant had encountered difficulties in prepaying the remaining balance on the retail installment contract that financed the purchase of their SSLs and that the payoff amount the complainant was quoted by Fanfaire did not appear to be correct. Nevertheless, the complainant paid the quoted payoff amount to Fanfaire.

Fanfaire responded to this complaint, indicating that it had miscalculated the payoff amount the complainant owed, resulting in an overcharge. Fanfaire later discovered that this error affected 36 SSL holders, including the complainant, resulting in overcharges totaling over $769.53. Fanfaire contends that this error was caused by an inadvertent mistake in a formula, which only occurred in limited circumstances. Specifically, this overcharge only occurred if (and only if) the customer's payoff date was between February 24 and February 28. Immediately upon discovering these overcharges, Fanfaire issued refunds to
the affected customers.

Based on the above, the Commissioner is of the opinion that Fanfaire has violated the Unruh Act, specifically Civil Code section 1806.3, by overcharging customers for prepayment of simple interest retail installment sales contracts. Based on the above, the Commissioner is of the opinion that Fanfaire is a "covered person" under the CCFPL because it has engaged in offering or providing consumer financial products or services to California residents, to wit, extensions of credit and servicing of extensions of credit.

Based on the above, the Commissioner is of the opinion that Fanfaire has engaged in unlawful acts or practices (through its above-stated violations of the Unruh Act) with respect to consumer financial products or services in violation of Financial Code section 90003(a)(1).

The Commissioner finds that entering into this Settlement Agreement is in the public interest and consistent with the purposes and provisions of the CCFPL. Fanfaire neither admits nor denies the Commissioner's Findings and Conclusions of
Law above. Fanfaire enters into this Settlement Agreement in an effort to compromise and to
further the interests of its loyal fans and customers.

To access the full Department of Financial Protection and Innovation press release, please visit: https://dfpi.ca.gov/wp-content/uploads/sites/337/2022/12/Admin.-Action-Fanfaire-Inc.-Settlement-Agreement.pdf?emrc=495a44