Fort Worth-based Cash America to pay $19 million in consumer refunds and fine
Source: Dallas Morning News
Federal regulators have ordered Fort Worth payday lender Cash America to pay up to $14 million in consumer refunds for violating rules involving debt collection lawsuits and overcharging military members.
The Consumer Financial Protection Bureau also announced today that Cash America will pay a $5 million fine for violating those rules as well as destroying documents prior to the agency’s examination.
CFPB’s enforcement action was its first one against a payday lender.
The agency found that Cash America engaged in robo-signing, a practice where important documents that require careful review and a signature from a knowledgeable individual were instead signed by someone else without following proper procedures or a machine. In Cash America’s case, the agency said robo-signing was used in documents filed in lawsuits under the company’s debt collection subsidiary in Ohio.
Read more: http://bizbeatblog.dallasnews.com/2013/11/fort-worth-based-cash-america-to-pay-19-million-in-consumer-refunds-and-fine.html/
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