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ARTICLE · 10 MARCH 2023

Recent CFPB Actions Focus On Protecting Military Families

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On February 23, the CFPB issued a consent order penalizing an auto finance company for allegedly violating the financial rights of military families and other consumers in providing auto title loans.

United StatesConsumer Protection
Moorari K. Shah
Moorari K. Shah
A.J. Dhaliwal
A.J. Dhaliwal
Matt Benz
Matt Benz
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On February 23, the CFPB issued a consent order penalizing an auto finance company for allegedly violating the financial rights of military families and other consumers in providing auto title loans. The CFPB found that the company violated the Military Lending Act by extending prohibited title loans and charging interests rates nearly three times greater than the 36% annual interest rate cap. Pursuant to the consent order, the company is required to provide redress payments to consumer in the amount of $5.5 million, implement and maintain robust internal controls to prevent repeat offenses, and pay a $10 million fine.

Similarly, on February 27, the CFPB announced that it had taken enforcement action against a California mortgage broker which allegedly engaged in a pattern of deceptive mortgage advertising practices, including sending advertisements to military families that led the recipients to believe the company was affiliated with the U.S. government.

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