Payday Lender Enters Into CFPB Consent Order

A payday retail lender ("Cash Tyme") with outlets in several U.S. states (i.e., Alabama, Florida, Indiana, Kentucky, Louisiana, Mississippi and Tennessee) entered into a Consent Order with the Consumer Financial Protection Bureau ("CFPB") for alleged violations of (i) the Consumer Financial Protection Act ("CFPA"), (ii) the Gramm-Leach-Bliley Act ("GLBA") and Regulation P, and (iii) the Truth in Lending Act ("TILA") and Regulation Z.

According to the CFPB Consent Order, Cash Tyme violated the CFPA by:

• failing to take sufficient steps to prevent unauthorized charges;
• neglecting to "promptly monitor, identify, correct, and refund overpayments by consumers;"
• making "collection calls to third parties" named as references on borrowers' loan applications that "disclosed or risked disclosing the debts to those third parties";