CFPB fines payday lender Cash Tyme $100,000 for unauthorized charges and other violations
The Consumer Financial Protection Bureau fined Indiana-based payday retail lender Cash Tyme $100,000 on Tuesday for violating the Consumer Financial Protection Act of 2010. The CFPB said in its order that the company had failed to take adequate steps to prevent unauthorized charges to customers, failing to promptly monitor, identify, correct, and refund borrower overpayments and making harassing collection calls to third-parties named as references on borrowers' loan applications. Cash Tyme also told borrowers it collected third-party references from borrowers on loan applications for verification purposes only, when in fact it was using that information to make marketing calls to the references. Cash Tyme also advertised services it did not offer, including check cashing, phone reconnections, and home telephone connections. Cash Tyme consented to the settlement without admitting or denying the findings. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.