CFPB fines TitleMax $9 million

On September 26, the CFPB issued a press release announcing that it has entered into a consent order with TMX Finance, LLC (TMX). The consent order settles allegations that the title lender engaged in unfair collection practices and failed to provide sufficient information to consumers regarding the terms of auto title loans, pawns or pledges. TMX is required to pay a $9 million penalty to the Bureau’s Civil Penalty Fund.

CFPB sues five Arizona title lenders

On September 20, the CFPB filed individual administrative lawsuits against five auto title lenders operating in the State of Arizona. The Bureau claims that all five lenders failed to adequately disclose the annual percentage rate (APR) on their website or in online advertisements promoting title loans. For each action, the Bureau filed a Notice of Charges. A Notice of Charges is comparable to a complaint filed in federal court, but instead initiates the proceedings in an administrative forum. The cases, if they do not settle, will be tried by an Administrative Law Judge (ALJ) from the CFPB’s Office of Administrative Adjudication. The ALJ will hold hearings and offer a recommendation to CFPB Director Richard Cordray who will issue a final decision. That decision may be appealed to a federal court.

Director Cordray testifies before Senate Banking Committee

On April 7, 2016, the Senate Banking Committee held a hearing on the Consumer Financial Protection Bureau’s Semi-Annual Report to Congress and featured testimony from CFPB Director, Richard Cordray. This hearing followed Director Cordray’s appearance before the House Financial Services Committee in March, but unlike the House hearing, exchanges between Republican Senators and Director Cordray remained civil despite vehement disagreement on a number of issues.