Customer Financial Protection Bureau Takes Action Against Payday Lender For Robo-Signing
Cash America to Refund up to $14 Million for Robo-Signing and Illegally Overcharging Servicemembers
Washington, D.C. вЂ“ The Consumer Financial Protection Bureau (CFPB) today took its very first enforcement action against a payday lender by buying money America Global, Inc. to refund consumers for robo-signing documents with debt collection legal actions. The CFPB additionally unearthed that money America вЂ“ among the biggest short-term, small-dollar loan providers into the country вЂ“ violated the Military Lending Act by illegally overcharging servicemembers and their own families. Money America will probably pay as much as $14 million in refunds to customers also it shall spend a $5 million fine of these violations as well as for destroying documents prior to the BureauвЂ™s assessment.
вЂњThis action brings justice into the money America customers who had been afflicted with unlawful robo-signing, and demonstrates that we're going to vigilantly protect the buyer rights that servicemembers have actually earned,вЂќ said CFPB Director Richard Cordray. вЂњWe will also be giving a message that is clear to any or all businesses under our view that impeding a CFPB exam by destroying documents, withholding documents, and instructing workers to mislead examiners is unsatisfactory.вЂќ