It’s been a busy week for the CFPB; since Sept. 21, the agency has taken action against six loan companies and a credit repair firm for deceiving consumers in a variety of ways.
On Monday, the CFPB took administrative action against TitleMax parent company, TMX Finance for luring consumers into expensive loan renewals by presenting them with misleading information. The agency also said the company used unfair debt collection tactics that illegally exposed information about a borrower’s debts to employers, friends and relatives.
The Savannah, Ga.-based company is one of the nation’s largest auto title lenders; it has more than 1,300 storefronts in 18 states, according to the CFPB.
The bureau ordered TMX to stop those practices and to pay a $9 million fine.
On Sept. 23, the CFPB filed suit in federal court against a credit repair company, Prime Marketing Holdings, which allegedly charged consumers illegal advance fees and misrepresented the cost and effectiveness of its services. The agency wants the company to stop those practices; the CFPB also is seeking financial relief for consumers, including fees paid to the company.
Prime Marketing Holdings has operated under several names, Park View Credit, National Credit Advisors, and Credit Experts and offers services across the country. The agency contends that the company claimed it could remove virtually all negative information from credit reports and boost credit scores by significant amounts.
On Sept. 21, the CFPB filed suit against five Arizona auto title lenders, Auto Cash Leasing, LLC; Interstate Lending, LLC; Oasis Title Loans, LLC; Phoenix Title Loans, LLC; and Presto Auto Loans, Inc. for failing to disclose the annual percentage rate in online advertising. The CFPB filed five administrative lawsuits seeking civil monetary penalties and orders requiring the company to correct their practices.
The actions come just weeks after the CFPB fined Wells Fargo $100 million for opening unauthorized accounts.
