A significant portion of my bankrutpcy clients have one or more payday loans in their credit history. These loans tend to carry very high interest loans that make it difficult for the borrowers to get out of the payday mills. The Consumer Financial Protection Bureau (CFPB) entered into a consent order with Cash America International, Inc. according to the LA Times article. Cash America International was accused of robo signing affidavits used in collection activities and violating laws against lending to members of the military. Theh violations remind me of the robo signing scandal impacting the mortgage business. Cash America International also owns and/or operates a subsidiary that owns CashNet USA, an online payday lender.
Borrowers will be issued up to $14 million in refunds. Therefore, it is very important that if you borrowerd from Cash America or Cashnet USA that you contact the company for more information. You should also contact the CFPB for more informaiton.
For the complete story go to LA Times
http://www.latimes.com/business/money/la-fi-mo-consumer-financial-protection-bureau-cash-america-20131120,0,3416209.story#axzz2lFZCgFlK.
Joseph K. Githuku
