CFPB Settles With Online Lender

Federal Issues Consumer Finance CFPB Online Lending

On September 27, the CFPB entered into a consent agreement with a California-based online lender for allegedly misrepresenting, among other things, the fees charged, the loan products that were available to consumers, and whether the loans would be reported to credit reporting companies. As part of the agreement, the CFPB indicated that the lender would be required to include the correct finance charge and annual percentage rate in all of its online disclosures, and must test those disclosures annually to ensure accuracy and compliance with the Truth in Lending Act.  As a result, the lender will be required to pay $1.83 million in consumer redress as well as $1.8 million as a civil penalty.