CFPB sues nonbank lender for illegal loan-churning

The Consumer Financial Protection Bureau recently sued a nonbank, high-cost installment lender and several of its subsidiaries for unlawful loan-churning practices that often targeted older Americans and single-parent wage earners with low or fixed annual incomes.

Although high-cost loan borrowers make up just under 10 percent of the company’s total borrower population, their refinances generate 40 percent of the company’s net revenue.