CFPB Files Lawsuit Against Canada-Based Payday Lender
Aug 05, 2015
Subsidiaries of the payday lender are accused of violating the Dodd-Frank Wall Street Reform and Consumer Protection Act’s prohibition on unfair, deceptive, and abusive acts and practices by collecting on loans from consumers in the U.S.
The Consumer Financial Protection Bureau is suing a Canada-based payday lender based on allegations that its subsidiaries collected loan payments and fees that consumers in the U.S. did not owe.
According to a news release from the Bureau, NDG Enterprise, which has commonly controlled subsidiaries in Canada and Malta, reportedly collected loan amounts and fees that were void or which consumers had no obligation to repay, and falsely threatened consumers with lawsuits and imprisonment.
The Bureau’s complaint is not a finding or ruling that the defendants have actually violated the law.
NDG Enterprise companies contacted by ACA International did not respond to requests for comment.
The Bureau filed its lawsuit in the U.S. District Court Southern District of New York because
“a substantial part of the events or omissions giving rise to the claims occurred here and defendants do business here,” the Bureau’s complaint against the companies in NDG Enterprise states. The loans are void in New York because they violate state usury caps and licensing requirements, according to the Bureau.
NDG Financial, through its wholly owned subsidiaries, has extended payday loans over the Internet to consumers in 50 states since at least July 21, 2011, according to the news release.
The Bureau alleges that the defendants violated the Dodd-Frank Wall Street Reform and Consumer Protection Act’s prohibition on unfair, deceptive, and abusive acts and practices.
The Bureau is seeking monetary relief and damages for consumers and for the defendants to adhere to all federal consumer financial protection laws.
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Category: Payday loans