CFPB Settles with Payday Lenders for Deceptive Techniques

CFPB Settles with Payday Lenders for Deceptive Techniques

Regulatory, conformity, and litigation developments within the services that are financial

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The other day, in CFPB v. NDG Financial Corp. et that is al customer Financial Protection Bureau (CFPB) entered as a proposed settlement with several payday loan providers and business officials situated in Canada and Malta. As history, the organization defendants contained a system of affiliated businesses, referred to as NDG Enterprise, which extended high-cost, short-term pay day loans on the internet to customers in most 50 states. The CFPB alleged the NDG Enterprise defendants violated the Dodd-Frank Wall Street Reform and customer Protection Act’s prohibition on unfair, misleading, and abusive functions and practices by (1) failing continually to get necessary licenses, (2) surpassing state usury restrictions, (3) making false threats to customers, (4) deceiving customers about their debts, and (5) making use of unlawful wage-assignment clauses in breach regarding the Credit tactics Act.

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