CFPB Sues Online Lender For Alleged Violations 2016 Consent Order

The CFPB recently filed a complaint against an online installment and single-payment lender alleging that it violated the terms of a 2016 consent order that previously required the company to pay millions in consumer redress and a civil penalty and to stop misleading consumers with false claims about the cost of loans and the benefits of repeated borrowing.

In its complaint, the CFPB alleges that the lender continued with much of the same illegal and deceptive marketing.  In particular, the complaint alleges that the company violated the CFPB's 2016 consent order, the CFPA, and ECOA/Regulation B by, among other things:

• Misrepresenting the benefits of repeatedly borrowing from the company by advertising that borrowers who did so would gain access to larger loans at lower rates when, in fact, that was not true for tens of thousands of consumers.