CFPB Takes Online Payday Lender To Court

The Consumer Financial Protection Bureau (CFPB) announced yesterday (August 4) its plans to sue NDG Enterprise, an offshore payday lender, for illegally collecting money consumers did not owe.

The Consumer Financial Protection Bureau (CFPB) announced yesterday (Aug. 4) its plans to sue NDG Enterprise, an offshore payday lender, for illegally collecting money consumers did not owe.

CFPB filed a lawsuit in federal district court against the company, alleging NDG Enterprise of collecting loan amounts and fees that were either invalid or that consumers were not required to repay. The company is also accused of deceptively threatening consumers with lawsuits and imprisonment.

“We are taking action against the NDG Enterprise for collecting money it had no right to take from consumers,” CFPB Director Richard Cordray said in an agency statement.

“Companies making loans within the U.S. have to comply with federal law, and the Consumer Bureau will work to ensure that American consumers receive the protections and fair treatment they deserve.”

NDG Enterprise operates in all 50 states, originating and collecting payday loans over the Internet. According to the CFPB, the company has violated the Dodd-Frank Wall Street Reform and Consumer Protection Act for demonstrating unfair, deceptive and abusive acts and practices.

The complaint against the NDG Enterprise alleges, among other things, that the company took part in the following acts:

  • Made false threats to consumers
  • Deceived consumers about their debts
  • Used illegal wage-assignment clauses

The CFPB has the authority, under the Dodd-Frank Act, to take action against institutions engaging in illegal practices. The bureau’s lawsuit will seek monetary relief and damages to the impacted consumers and ensure that NDG Enterprise will no longer violate any federal consumer laws.

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