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- Published on Tuesday, 08 November 2016 06:11
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CFPB Fines Titlemax Parent Company $9 Million for Luring Consumers Into More Costly Loans
The job of the most honest seller is to sell you, not to give you reasons to buy from a competitor. That over-riding reality drives the free-enterprise system, and places a responsibility on you.
FoolProof's Hall of Shame is here to remind you why a healthy dose of skepticism should rule your decisions before dealing with anyone who wants to touch your money or your general welfare.
September 26, 2016
Lender Also Illegally Exposed Borrowers' Debt Information to Employers, Friends, and Family
The Consumer Financial Protection Bureau (CFPB) today took action against TitleMax parent company TMX Finance LLC for luring consumers into costly loan renewals by presenting them with misleading information about the deals' terms and costs. The lender also used unfair debt collection tactics that illegally exposed information about debts to borrowers' employers, friends, and family. The Bureau ordered TMX Finance to stop its unlawful practices and pay a $9 million penalty.
"TMX Finance lured consumers into more expensive loans with information that hid the true costs of the deal," said CFPB Director Richard Cordray. "They then followed up with intrusive visits to homes and workplaces that put consumers' personal information at risk. Today we are making it clear that these actions were unacceptable and illegal."
Specifically, the Bureau found that TMX Finance:
- Presented consumers with misleading information about loan terms
- Exposed information about consumers' debts to co-workers, neighbors, and family members
TMX Finance is required to:
- Stop abusive loan-repayment policies
- Stop intrusive visits to consumers' homes or workplaces
- Pay a $9 million penalty