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CFPB action against Moneytree
Today, the Consumer Financial Protection Bureau (CFPB) took action against Moneytree, Inc., a financial services company that offers payday loans and check-cashing services, for misleading consumers with deceptive online advertisements and collections letters. The company also made unauthorized electronic transfers from consumers’ bank accounts. The CFPB has ordered the company to cease its illegal conduct, provide $255,000 in refunds to consumers, and pay a civil penalty of $250,000.
“Consumers deserve honesty and transparency from the financial institutions they rely on,” said CFPB Director Richard Cordray. “Moneytree’s practices meant consumers were making decisions based on false and deceptive information, and today’s action will give the company’s customers the redress they are owed.”
Moneytree, Inc., is a financial services company based in Seattle, Wash. It offers payday loans, check-cashing, and other services to consumers. The CFPB has conducted multiple supervisory examinations of Moneytree’s lending, marketing, and collections activities and has identified significant weaknesses in the company’s compliance-management system in each of them. The CFPB found in today’s order that the company had failed to address those weaknesses and deceived consumers about the price of check-cashing services, made false threats of vehicle repossession when collecting overdue unsecured loans, and withdrew funds from consumers’ accounts without written authorization.
The full text of today’s order is available at: http://files.consumerfinance.
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