"Payday lender Cash America International will pay up to $19 million to settle allegations that it robo-signed court documents, overcharged members of the military, and took steps to impede an examination by the Consumer Financial Protection Bureau," writes American Banker's Kevin Wack.
The consent order is the agency's first-ever enforcement action against a payday lender.
Cash America, one of the industry's biggest companies, will refund up to $14 million to consumers, $6 million of which has already been paid back. The payday lender will also pay a $5 million dollar fine.
"This 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 service members have earned," Richard Cordray, the CFPB's director, said in a press release. "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."
For the full piece see "CFPB Takes First-Ever Enforcement Action against a Payday Lender" (may require subscription).