An online payday lender and 20 interrelated entities recently settled with the Consumer Financial Protection Bureau (CFPB) over allegations that the defendants unlawfully originated short-term, small-dollar loans and initiated unauthorized collections on them without consumers’ knowledge.
In light of the defendants’ limited ability to pay, the settlement stipulates that the company’s obligation to pay a monetary penalty redressing consumers for money unlawfully collected from them will be suspended as long as they comply with the terms of a bureau consent order.
Find out more information about the terms of the settlement.