Revenge is a dish best served...by the CFPB! Today the Consumer Financial Protection Bureau brought an enforcement action against giant pay day lender Cash America, one of the largest short-term loan sharks in the US. Cash America agreed to pay $14 Million to 14,000 people for robo-signing practices related to debt collection lawsuits. They will also pay 5 million for the violation and other misconduct, according to a CFPB report released today.
Some of the "misconduct" mentioned in the enforcement action included destroying documents before the CFPB could examine them which is a big no-no in the legal world. “We 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.”CFPB Director Richard Cordray said.
Within months of the CFPB discovering the robo-signing, Cash America dismissed pending collections lawsuits, terminated all post-judgment collections activities, cancelled all judgments obtained, and corrected information it furnished to credit bureaus for the nearly 14,000 wrongful cases filed in Ohio.
These guys are scum. The whole model of pay day lending is predatory in nature and promotes a vicious cycle of getting paid, paying off your loan, then not having any money so you have to get another loan. Their victims are usually those who can't afford the terms and conditions of the loan, but are forced to accept them in order to eat or put gas in their car to get to work. Once you decide you want out of the cycle, you end up on the receiving end of a lawsuit which is litigated illegally by the pay day lender - hence the CFPB enforcement action.
In the US, pay day loans are a multi-billion dollar industry. In California, pay day lender Money-Mart settled a class-action lawsuit where they agreed to pay its customers $7.5 million. The Money Mart settlement will resolve a class action lawsuit, entitled Dennis Herrera v. Check N’ Go of California, Inc., et al., that alleges Money Mart offered to California consumers CustomCash loans with interest rates that exceeded the limits set by California Law and Cash ‘til Payday loans that did not comport with the California law. Check n Go allegedly charged California customers up to 400% interest on loans which is far above what California law allows.
If you are a victims of a pay day lender, you should contact your state Attorney General's Office and file a complaint immediately. You may be entitled to money somewhere down the road because you can bet the CFPB has "released the hounds" so to speak, on pay day lenders. They smell blood and are going for the kill.
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| CFPB has caught the scent of Pay Day loan sharks!! |
Some of the "misconduct" mentioned in the enforcement action included destroying documents before the CFPB could examine them which is a big no-no in the legal world. “We 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.”CFPB Director Richard Cordray said.
Within months of the CFPB discovering the robo-signing, Cash America dismissed pending collections lawsuits, terminated all post-judgment collections activities, cancelled all judgments obtained, and corrected information it furnished to credit bureaus for the nearly 14,000 wrongful cases filed in Ohio.
These guys are scum. The whole model of pay day lending is predatory in nature and promotes a vicious cycle of getting paid, paying off your loan, then not having any money so you have to get another loan. Their victims are usually those who can't afford the terms and conditions of the loan, but are forced to accept them in order to eat or put gas in their car to get to work. Once you decide you want out of the cycle, you end up on the receiving end of a lawsuit which is litigated illegally by the pay day lender - hence the CFPB enforcement action.
In the US, pay day loans are a multi-billion dollar industry. In California, pay day lender Money-Mart settled a class-action lawsuit where they agreed to pay its customers $7.5 million. The Money Mart settlement will resolve a class action lawsuit, entitled Dennis Herrera v. Check N’ Go of California, Inc., et al., that alleges Money Mart offered to California consumers CustomCash loans with interest rates that exceeded the limits set by California Law and Cash ‘til Payday loans that did not comport with the California law. Check n Go allegedly charged California customers up to 400% interest on loans which is far above what California law allows.
If you are a victims of a pay day lender, you should contact your state Attorney General's Office and file a complaint immediately. You may be entitled to money somewhere down the road because you can bet the CFPB has "released the hounds" so to speak, on pay day lenders. They smell blood and are going for the kill.
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