{"id":37882,"date":"2023-03-11T20:04:18","date_gmt":"2023-03-12T01:04:18","guid":{"rendered":"https:\/\/d56fg8tfg.fitnews.club\/finance\/consumer-financial-protection-bureau-takes-action-against-payday-lender-for-robo-signing\/"},"modified":"2023-03-11T20:04:18","modified_gmt":"2023-03-12T01:04:18","slug":"consumer-financial-protection-bureau-takes-action-against-payday-lender-for-robo-signing","status":"publish","type":"post","link":"https:\/\/d56fg8tfg.fitnews.club\/finance\/consumer-financial-protection-bureau-takes-action-against-payday-lender-for-robo-signing\/","title":{"rendered":"Consumer Financial Protection Bureau Takes Action Against Payday Lender For Robo-Signing"},"content":{"rendered":"
Cash America to Refund up to $14 Million for Robo-Signing and Illegally Overcharging Servicemembers<\/strong><\/em><\/p>\n Washington, D.C. <\/b>\u2013 The Consumer Financial Protection Bureau (CFPB) today took its first enforcement action against a payday lender by ordering Cash America International, Inc. to refund consumers for robo-signing court documents in debt collection lawsuits. The CFPB also found that Cash America \u2013 one of the largest short-term, small-dollar lenders in the country \u2013 violated the Military Lending Act by illegally overcharging servicemembers and their families. Cash America will pay up to $14 million in refunds to consumers and it will pay a $5 million fine for these violations and for destroying records in advance of the Bureau\u2019s examination.<\/p>\n \u201cThis action brings justice to the Cash America customers who were affected by illegal robo-signing, and shows that we will vigilantly protect the consumer rights that servicemembers have earned,\u201d said CFPB Director Richard Cordray. \u201cWe are also sending a clear message today to all companies under our watch that impeding a CFPB exam by destroying documents, withholding records, and instructing employees to mislead examiners is unacceptable.\u201d<\/p>\n Payday loans are often described as a way for consumers to bridge a cash flow shortage between paychecks or the receipt of other income. They can offer quick access to credit, especially for consumers who may not qualify for other credit. Many payday loans are for small-dollar amounts that must be repaid in full in a short period of time.<\/p>\n Cash America is a publicly traded financial services company headquartered in Fort Worth, Texas that provides consumer financial products and services, including payday loans, lines of credit, installment loans, and pawn loans. With hundreds of retail locations across more than 20 states, it is one of the largest payday lending companies in the United States. Cash America\u2019s Chicago-based subsidiary, Enova, offers online loans in 32 states under the brand name CashNetUSA.<\/p>\n Today\u2019s action is the Bureau\u2019s first public enforcement action against a payday lender; its first public action under the Military Lending Act; and the first public action for a company\u2019s failure to comply fully with the CFPB\u2019s supervisory examination authority.<\/p>\n After a routine CFPB examination of Cash America\u2019s operations, the CFPB found multiple violations of consumer financial protection laws, including:<\/p>\n Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB has the authority to take action against institutions for violations of federal consumer financial protection laws. To ensure that all impacted consumers are repaid and that consumers are no longer subject to these illegal practices, Cash America has committed to:<\/p>\n The CFPB has authority to oversee the payday loan market and began its supervision of payday lenders in January 2012. In addition, the CFPB has taken a number of steps to learn more about the marketplace for payday loans, and released a report on payday loans<\/span> Violations<\/h3>\n
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