The Consumer Financial Protection Bureau (CFPB) has announced a settlement with payday lender Cash Express, which will pay approximately $ 32,000 in restitution to consumers, as well as a civil fine of $ 200,000 for violating the Consumer Financial Protection Act ( CFPA).
Based in Tennessee, Cash Express offers short-term, high-cost loans, including payday loans and title deeds, in addition to check cashing services. The company has approximately 328 retail lending institutions in Tennessee, Kentucky, Alabama and Mississippi.
According to a press release, CFPB found that Cash Express “violated the [CFPA] by misleadingly threatening in collection letters that it would take legal action against consumers, even if the debts had passed the date of legal action, and it was not Cash Express’ practice to sue these consumers.“
Additionally, the agency discovered that Cash Express falsely claimed it could report negative credit information for late or missed payments, although the company never sent this information to the credit bureaus. Cash Express further violated the CFPA by withholding funds during check cashing transactions to satisfy overdue loan amounts, but never disclosed this practice to the consumer prior to the transaction.
Under the Consent Order, Cash Express and its subsidiaries are prohibited from automatically withdrawing money from check cashing transactions without meeting certain conditions. The company is also prohibited from misrepresenting its consumer reporting activities, as well as its intention or likelihood of making a complaint about unpaid debts.
This is the last settlement the CFPB has reached with a payday lender. In August, the agency announced that it had reached a settlement agreement with Richard Moseley, Sr., Richard Moseley, Jr, and 20 interrelated companies controlled by the two over payday loans. Under the settlement, the defendants are excluded from the industry, must give up approximately $ 14 million in assets and must pay a civil fine of $ 1.
NEW PYMNTS DATA: 58% OF MULTINATIONAL COMPANIES USE CRYPTO-CURRENCY
On: Despite price volatility and regulatory uncertainty, a new study from PYMNTS shows that 58% of multinational companies are already using at least one form of cryptocurrency, especially when transferring funds across borders. The new Cryptocurrency, Blockchain and Global Business survey, a PYMNTS and Circle collaboration, polling 500 executives examines the potential and pitfalls that crypto faces as it becomes part of the mainstream financial sector.