Payday Lender Loses Appeal of $38.4 Million Restitution Order

A payday lender and its owner can’t avoid paying the $38.4 million restitution order the Consumer Financial Protection Bureau issued against them for using misleading loan forms, the Tenth Circuit said.

Integrity Advance LLC and James Carnes argued that under recent US Supreme Court precedent dealing with the separation of powers, the CFPB’s structure was unconstitutional and it didn’t have authority to issue the order.

Disagreeing, the US Court of Appeals for the Tenth Circuit said Thursday that under the Supreme Court’s holding in Collins v. Yellen, the CFPB director was properly appointed and the actions taken by the ...