CFPB Sues Online Lender for Alleged CFPA and ECOA Violations | Goodwin


On September 8, 2021, the Consumer Financial Protection Bureau (CFPB) announcement that he filed a complaint against an online lender for alleged violations of a consent order of 2016, the Consumer Financial Protection Act (CFPA), 12 USC §§ 5564, the Equal Credit Opportunity Act (ECOA), 15 USC §§ 1691-1691f, and Regulation B (Reg B), 12 CFR § 1002.9 (a) – (b).

In 2016, and as before covered Through Enforcement Watch, the CFPB issued a consent order to resolve alleged violations of the Consumer Financial Protection Act, the Truth in Lending Act and their regulations. The Consent Order 2016 forced the lender to pay a civil fine of $ 1.8 million and $ 1.83 million in damages, and to cease its allegedly illegal practices.

In its new lawsuit, the CFPB alleges that the lender continued the same allegedly illegal practices, including deceptive marketing and failure to provide timely and accurate advice to borrowers. More precisely, the complaint alleges that the lender misrepresented the benefits of borrowing from it, in particular by falsely claiming that some “return borrowers[accesslargerloansatlowerinterestrates”[accéderàdesprêtsplusimportantsàdestauxd’intérêtplusbasLaplainteallègueenoutrequeleprêteurn’apasfourniunavisopportunetadéquatdesmesuresdéfavorablesprisesconcernantdesmilliersdedemandesdeprêtcommel’exigentl’ECOAetleRegB

The CFPB is asking for an injunction, costs, civil penalties and additional financial compensation for consumers and unjust enrichment.

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