CFPB Fines Tennessee Payday Lender for 'Abusive' Practices

Payday lender Cash Express LLC was fined last week by the Consumer Financial Protection Bureau after the agency found several of the firm's debt-collection practices to be in violation of the Consumer Financial Protection Act, The Wall Street Journal reports. The bureau said the Cookeville-based company would deceive customers by threatening legal action over debts that were past the statute of limitations.  Additionally, the bureau said the company told customers it was sending negative information about them to credit-reporting firms, even though it did not send this type of report. The bureau labeled one practice as “abusive,” claiming the company would withhold money from a check-cashing transaction to pay down an outstanding debt, without telling the customer. The company was ordered to pay a $200,000 civil penalty and to return $32,000 to affected customers.

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