CFPB Settles Long-Standing Lawsuit Against Bankrupt FinTech Lender | Weiner Brodsky Kider PC

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The CFPB recently installed a case against a financial technology company that had been in litigation for two years, over allegedly unfair, deceptive and abusive acts and practices of the company in collecting online installment loans that were allegedly partially or totally void in 17 states. WBK’s previous coverage of CFPB’s lawsuit against the company can be found here.

Under the regulations, the company and its subsidiaries are indefinitely prohibited from providing services to lenders who provide credit, service credit, or cash on credit in violation of state usury laws or without a license issued by the state in one of the seventeen states (Arizona, Arkansas, Colorado, Connecticut, Illinois, Indiana, Kentucky, Massachusetts, Minnesota, Montana, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio and South Dakota) where the fintech company allegedly violated state lending laws. The settlement includes a nominal civil monetary fine totaling $ 7, including $ 1 for each of the company and its subsidiaries. The company is also required to assist the CFPB in the pursuit of its investigation.

CFPB noted in a press release that the settlement is part of the financial technology company’s bankruptcy resolution, which will also include a consumer remedy that is expected to exceed $ 39 million.

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