CFPB Enters $9 Million Consent Order with Title Lender Over Disclosures and Debt Collection Activities

CFPA  •  CFPB

CFPBOn September 26, the Consumer Financial Protection Bureau (CFPB) entered into a consent order with one of the country’s largest auto title lenders over allegations that the lender misled consumers about the terms and costs of their loan agreements and engaged in unlawful debt collection activities.  The CFPB alleged that the lender’s “Voluntary Payback Guide” failed to disclose that the cost of a consumer’s loan would increase when a consumer chose to repay the loan over a longer period of time, and failed to disclose the total cost of the loan.  In addition, the CFPB alleged that when consumers failed to pay their loans, the lender would reveal the consumer’s private financial information to co-workers, neighbors, and family members while attempting to collect the debt.  Under the terms of the consent order, the lender agreed to pay a $9 million civil money penalty, disclose the full cost of consumer’s loans, and cease illegal debt collection activities

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