Payday Lender Forced To Refund $14 Million

Source: CNBC

Payday lender Cash America International will refund consumers $14 million and pay a $5 million fine to settle civil allegations that it improperly pursued some customers’ debt and overcharged military service members, U.S. regulators said on Wednesday.

The enforcement action against Cash America International is the first against a payday lender from the Consumer Financial Protection Bureau, a new regulator created by the 2010 Dodd-Frank Wall Street reform law.

Payday lenders like Cash America provide small short-term loans at high interest rates to help a borrower get to the next paycheck. But the have come under scrutiny from U.S. authorities in recent years amid concern about lax oversight.

In addition to the company’s problems with debt collection and overcharging, the CFPB also accused the company of impeding a regulatory exam by destroying certain documents and coaching employees on what to tell examiners.

To read this article in its entirety visit CNBC.