On February 5, 2015, the California Department of Business Oversight announced that it reached a settlement with a payday lending company over allegations that the company used deceptive sales pitches to market payday loans in violation of the California Lenders Law. The company purportedly structured loans in a way that caused borrowers to take out loans for a greater amount than they wanted or needed, and to charge unlimited interest rates without a consumer’s knowledge. The lender agreed to pay $125 per person in restitution and $1 million in penalties and cost reimbursement. It also agreed to disclose loan minimums and the effect of those minimums on interest rates under state law.
The post California Department of Business Oversight Reaches $1 Million Settlement with Payday Lender for Deceptive Marketing appeared first on Consumer Finance Insights (CFI).