CFPB Sues Online Lender Over Alleged CFPA and ECOA Violations



On September 8, 2021 the Consumer Financial Protection Bureau (CFPB) announced that it filed a complaint against an online lender for alleged violations of a 2016 consent order, the Consumer Financial Protection Act (CFPA), 12 U.S.C. §§ 5564, the Equal Credit Opportunity Act (ECOA), 15 U.S.C. §§ 1691–1691f, and Regulation B (Reg B), 12 C.F.R. § 1002.9(a)–(b).

In 2016, and as previously covered by Enforcement Watch, the CFPB entered a consent order to resolve alleged violations of the Consumer Financial Protection Act, Truth in Lending Act, and their implementing regulations.  The 2016 consent order required the lender to pay a $1.8 million civil penalty and $1.83 million in redress, and to cease its allegedly unlawful practices.

In its new lawsuit, the CFPB alleges that the lender has continued the same allegedly unlawful practices, including deceptive marketing and failure to provide timely and accurate notices to borrowers.  Specifically, the complaint alleges that the lender misrepresented the benefits of borrowing from it, including by falsely claiming that certain “returning borrowers . . . gain access to larger loans at lower interest rates.”  The complaint further alleges that the lender failed to provide timely and adequate notice of adverse action taken as to thousands of loan applications, as is required by the ECOA and Reg B.

The CFPB seeks injunctive relief, costs, civil penalties, and additional monetary relief for consumers and unjust enrichment.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Goodwin | Attorney Advertising

Written by:


Goodwin on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.