Banking Law News

Texas Lender to Pay $1.3 Million for Disappearing Discounts

April 1, 2020, 9:16 PM

A Texas payday lender will pay $1.3 million in consumer redress and penalties for unfair and deceptive practices, including advertising a 50% discount on all loan fees that consumers never received, the Consumer Financial Protection Bureau said.

Irving, Texas-based Cottonwood Financial Ltd., which operates the Cash Store chain of short-term lenders in seven states, violated debt collection, credit reporting and other consumer finance laws, resulting in harm to more than 1,200 consumers between 2013 and 2015, the CFPB said in a Wednesday statement.

Cash Store offers high-interest rate payday, auto title and unsecured short-term installment loans.

The company, with around...

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