CFPB Sues Loan Co. for Lying to 9/11 First Responders, Others

09/26/17 – The Consumer Financial Protection Bureau (CFPB) took action against a loan company for lying in loan offerings to consumers who were awaiting payment from settlements in legal cases or from victim-compensation funds.

These consumers included former NFL players who are entitled to receive money from a settlement with the NFL for injuries suffered while playing professional football, individuals who were harmed by the Deepwater Horizon oil-rig accident and are entitled to payouts from settlements related to that incident, and first responders injured as a result of  the Sept. 11, 2001, World Trade Center attack who were entitled to payments from the Zadroga Fund established by Congress.

The loan company is headquartered in Verona, New Jersey and marketed to consumers who were entitled to payments from legal settlements or victim-compensation funds. In its complaint, the CFPB alleges that the company offered loans to settlement or victim-fund recipients while lying about the cost of the loans in the long run. The CFPB also alleges that in marketing the loans, the company engaged in deceptive acts and practices, in violation of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Specifically, the CFPB alleges that the company misled consumers:

In a complaint and proposed consent order filed in federal court, the CFPB is seeking to require the company to pay $70,000 in civil money penalties to the CFPB’s Civil Penalty Fund. The proposed penalties take into account the defendants’ inability to pay more.

CFPB Press Release; Complaint; Proposed Consent Order.

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