CFPB, Payday Lenders Settle

The Consumer Financial Protection Bureau, the government watchdog agency, settled with a handful of payday lenders over alleged violations of the Consumer Financial Protection Act.

Marketwatch, citing the CFPB, reported it settled with payday lenders and officials of the companies located in Canada and Malta. According to the report, the CFPB contended the companies told consumers they had to repay loans in states where the loans were running afoul of licensing and usury rules. The loans violated the Credit Practices Act because they were conditioned on wage assignment clauses. The companies that settled with the CFPB include NDG Financial Corp., E-Care Contact Centers, Ltd., Blizzard Interactive Corp., New World Consolidated Lending Corp., New World Lenders Corp., Payroll Loans First Lenders Corp., New World RRSP Lenders Corp., Northway Financial Corp., Ltd., and Northway Broker, Ltd. Marketwatch noted that corporate officials Kimberly DeThomas, Jeremy Sabourin, and William Wrixon were also part of the settlement. The defendants are prohibited from offering, promoting, originating, servicing and collecting any consumer loans for people living in the U.S.

The settlement with the payday lenders comes at a time when there are changes afoot at the CFPB. In January the government watchdog agency announced new appointments in several areas including Andrew Duke, who will serve as the policy associate director for external affairs. Duke has 27 years of experience in public policy, 20 of which were on Capitol Hill, where he served for three different members of Congress. Democrats just took back control of the House of Representatives and are gearing up to claw back some of the changes that have come to the CFPB under President Donald Trump and acting director Mick Mulvaney. Maxine Waters, the new chairwoman of the House Financial Services Committee, has previously said she plans to hold Mulvaney accountable for his oversight as the head of the CFPB. Under Mulvaney’s charge the CFPB has taken a more pro-business stance.



New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.