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Important information

• Government Actions:

  Government Action: BBB reports on known government actions involving business’ marketplace conduct:

  In the Matter of: THE COMMISSIONER OF FINANCIAL PROTECTION AND INNOVATION, Complainant, v. NOVO PLATFORM INC., Respondent.
  

  As of February 11, 2022:

  Novo Platform has entered into a Settlement Agreement with the California Department of Financial Protection and Innovation.  The Settlement Agreement terms and conditions are as follows:

  Novo and Novo agrees that in accordance with Cal. Fin. Code §§ 561 and 563 in California, that Novo will cease and desist from using the name “banknovo.com,” “@banknovo.com,” and similar names or references in its business unless and until it becomes licensed or otherwise authorized to engage in the business of banking under the laws of California, another state or of the United States.

  Novo shall distance itself from use of the term “banking” and derivatives by clarifying statements on its website, on its mobile app, and in advertising to address the following:
  i. Where “banking” terminology is used, Novo shall place a disclosure stating that Novo is not a bank and banking services are provided by its Bank
  Sponsor(s). The disclosure shall be in bold and/or increased font size in a clear and conspicuous manner proximate to the use of the banking
  terminology.
  

  ii. Novo shall enhance its internal review and approval process for when it presents testimonials that may be perceived as representing Novo as a bank.

  iii. Novo shall clarify or annotate in all testimonials it publishes, or causes to be
  published, that use “banking” terminology that Novo is a financial
  technology company not a bank and banking services are provided by
  Novo’s Bank Sponsor(s). Further, Novo shall monitor affiliates and agents
  who publish other testimonials and provide clarifying information that Novo
  is not a bank in response to such testimonials that use “banking”
  terminology.
  

  iv. Where appropriate, Novo shall revise website language to state that
  customers can open an account “through” Novo, where existing language
  states “Most Innovative Bank” or similar language.
  

  v. In paid Google search results, Novo shall place a statement on Google and
  other ads that banking services are provided by its Bank Sponsor(s), which it
  will identify by name.
  

  vi. Novo shall include in its website Frequently Asked Questions (FAQ), an
  answer that clearly explains that the bank accounts are held at its Bank
  Sponsor(s), which it will identify by name.
  

  vii. Novo shall provide a clear and prominent disclaimer during the account set
  up process to inform the customer that Novo is a financial technology
  company not a bank and banking services are provided by Novo’s Bank
  Sponsor(s).
  

  Novo shall enhance its description of Novo’s role as technology, business processor,
  and marketing service provider to its Bank Sponsor(s) and make clear that banking
  products and services are provided by Novo’s Bank Sponsor(s). The description
  shall be clear and conspicuous in the response to the “What is Novo?” question in
  the company’s website FAQs.

   Compliance and Reporting. Novo shall establish, implement, enhance, and maintain
  testing policies, procedures, and standards reasonably designed to, at a minimum,
  ensure compliance with the provisions of this Agreement and with Cal. Fin. Code §
  561. Furthermore, by May 15, 2022, and again one year after the effective date of
  this Agreement, Novo shall submit to the Commissioner an accurate written
  compliance progress report, which, at a minimum describes in detail the manner in
  which Novo has complied with this Agreement.

  LINK: https://dfpi.ca.gov/wp-content/uploads/sites/337/2022/02/Admin.-Action-Novo-Platform-Inc.pdf
  

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