CFPB sues Virginia pawnbroker/auto title lender

CFPB sues Virginia pawnbrokerOn November 3, the CFPB filed a lawsuit in Virginia federal district court against B&B Pawnbrokers, Inc. (“B&B”) for allegedly deceiving consumers about the actual annual cost of its loans.

B&B operates in Fredericksburg, Virginia and offers closed-end pawn and auto title loans. In the complaint, the Bureau alleged that B&B violated the Truth in Lending Act (TILA) and the Consumer Financial Protection Act (CFPA).

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.