Regulatory actions against high-cost lenders

The CFPB found TitleMax violated the Military Lending Act by making title loans above the 36% military APR cap to servicemembers, and violated the Truth in Lending Act by charging for a product that understated the finance charge.

The CFPB found TitleMax gave consumers misleading information about loan payment options and unlawfully disclosed information about consumers’ past-due debts to third parties — references, employers and neighbors — while collecting.

As a repeat offender, the CFPB found Enova again debited accounts without authorization and deceived customers, violating its 2019 order. It was fined and banned from offering certain short-term consumer loans for seven years.

The CFPB found Enova debited consumers’ bank accounts without authorization and failed to honor loan extensions it had granted.

A federal court entered judgment for the CFPB (suit filed 2013), finding CashCall and affiliate Delbert Services serviced and collected high-cost installment loans that were void or uncollectible because they exceeded state usury caps or violated state licensing laws.

The CFPB found ACE Cash Express used illegal debt-collection tactics — including harassment and false threats of suits or criminal prosecution — to pressure overdue payday borrowers into taking out new, unaffordable loans.

The CFPB found Security Finance made improper in-person and telephone collection attempts — including physically blocking consumers from leaving and contacting workplaces — and furnished inaccurate information to credit-reporting agencies.

Settling a suit the CFPB filed in 2022, MoneyLion resolved allegations that it overcharged servicemembers above the Military Lending Act’s 36% cap through required membership fees and blocked membership cancellation until loans were repaid.

The FTC alleged Brigit deceptively promised ‘instant’ cash advances of up to $250 that most consumers could not obtain, charged undisclosed instant-transfer fees, and used manipulative design to block subscription cancellation.

Advance America entered a consent order with California’s financial regulator (the DFPI, then DBO) concerning its consumer lending practices in California, following an earlier 2009 settlement.

The FTC (case filed by the DOJ) alleges Dave deceived consumers about the size of its cash advances (marketed ‘up to $500’), charged undisclosed ‘express’ fees, and collected ‘tips’ without clear consent. The litigation is pending.

The SEC found World Acceptance’s former Mexican subsidiary paid more than $4M in bribes to Mexican officials, in violation of the Foreign Corrupt Practices Act.