Negotiating fine amounts with DFI

The Department of Financial Institutions [DFI] has recently demonstrated an unwillingness in 2025 to deviate from the fine amounts it seeks in a Statement of Charges when negotiating to have a Consent Order short of proceeding on an adjudication on the merits.  In recent years, DFI was willing to reduce fine amounts by roughly twenty-five to thirty percent of the initial amounts sought, with some combination of stayed amounts tied to compliance in the near future.

Now, when a licensee seeks to discount this amount, DFI asks to have a Financial Declaration from the licensee to demonstrate a financial hardship before it considers something in the alternative.  The information sought includes, but is not limited to:

• Current credit report

• Identification of lender/creditor with latest credit application

• Personal tax return

• A list of personal assets to include:

  • Cash and accounts held, checking and savings, money market

• Securities to include:

  • Bonds, notes, mortgages

  • Equity securities, mutual funds, options

• Loans and accounts receivable

• Ownership interest in business

• Life insurance

And on and on—it is a fairly daunting exercise where DFI may still not budge on fine amounts it seeks, where the licensee may be more motivated than in the past to proceed with adjudication rather than quibble over an enormous fine amount.  Make sure you are aware of the risks either way!