News from the CFPB
Payday Lending Comment – The U.S. District Court for the Western District of Texas upheld the Payment Provisions in the CFPB’s 2017 payday lending rule. In response, CFPB Acting Director Dave Uejio Tuesday commented that he was “pleased the court reaffirmed our ability to protect borrowers from unfair and abusive payment practices in the payday lending and other markets covered by the rule." He added that “the CFPB expects lenders to follow the requirements of the payment provisions, consistent with the court’s order.” The effective date for the requirements is June 13, 2022. (Published September 8, 2021)
Violation of Consent Order – The CFPB filed a lawsuit accusing LendUp Loans, LLC of violating a 2016 consent order and deceiving tens of thousands of borrowers. In 2016, the Bureau ordered LendUp to pay $1.83 million in consumer redress and a $1.8 million civil penalty and to stop misleading consumers with false claims about the cost of loans and the benefits of repeated borrowing. In the current complaint, the CFPB alleges that, in violation of the 2016 order, LendUp has continued with much of the same illegal and deceptive marketing. The CFPB also alleges that LendUp illegally failed to provide timely and accurate notices to consumers whose loan applications were denied. (Published September 8, 2021)
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