CFPB Takes Action against Springstone Financial, LLC; Collectors Should Take Note

Tim Bauer

The Consumer Financial Protection Bureau (CFPB) has ordered Springstone Financial, LLC (Springstone) to provide $700,000 in relief to victims of deceptive credit enrollment tactics. Springstone, headquartered in Westborough, Mass., is a wholly-owned subsidiary of San Francisco-based Lending Club Corporation.

The CFPB announcement states that many consumers who signed up for Springstone’s deferred-interest loan product at dental offices to pay for dental work were led to believe that the product was interest free. In fact, interest accrued from the date of the consumer’s purchase and was charged if the balance was not paid in full before the promotional period ended. Approximately 3,200 consumers who signed up for the product ultimately were charged and paid deferred interest.

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