CFPB Targets Misleading Advertisements And Communications In Multiple Enforcement Actions And Other Updates

CFPB and the Navajo Nation File Complaint against Operators of Alleged Tax Refund Scheme

On April 14, 2015, the Consumer Financial Protection Bureau (CFPB) and the Navajo Nation filed a civil complaint and a proposed consent order against companies and individuals who offered tax refund loans to clients using their tax preparation services. The complaint alleges that S/W Loans, Inc., J Thomas Development, and two principals offered consumers loans at high interest rates in anticipation of the tax refund that the client would receive, and that these products violate consumer financial laws. Specifically, the CFPB and the Navajo Nation have alleged the following violations:

• Steering: The CFPB and the Navajo Nation allege that the companies and individuals did not disclose their financial interest in the products toward which they directed consumers. The complaint alleges that these practices constitute "abusive acts or practices" under the Consumer Financial