David Edwards
A prominent U.S. lending company has been fined $15 million for engaging in widespread illegal activities, including unauthorized withdrawals from customers’ bank accounts. The Consumer Financial Protection Bureau (CFPB) is also prohibiting the Chicago-based lender, Enova, from providing certain types of consumer loans due to non-compliance with directives to amend its misleading practices.
The CFPB found that Enova made unauthorized bank account withdrawals and failed to honor promised loan extensions. Additionally, the company provided false information about loan payment due dates. Previously in 2019, Enova faced a $3.2 million fine for similar misconduct, and despite orders from the CFPB to amend its practices, the company continued its illegal activities.
Enova, asserting that most of the issues were self-reported to the CFPB, claims to have already compensated affected customers. The company attributes these issues to unintentional computer and system errors, noting the challenges in completely eliminating errors from complex systems.
Enova, operating in 37 states under its CashNetUSA and NetCredit brands, offers unsecured installment loans and lines of credit. The company, with nine million customers, has provided over $52 billion in loans.
