Payday Retail Lender Settles with CFPB for Overcharging Customers, Risking Third Party Disclosure, and Misstating APR

On Tuesday, the Consumer Financial Protection Bureau (CFPB or Bureau) announced that it reached a settlement with Cash Tyme, a payday retail lender. Per the consent order, Cash Tyme must pay a $100,000 fine, split into two $50,000 payments.

The allegations against Cash Tyme included, among other things, the following:

In addition to paying the fine, Cash Tyme must implement adequate processes related to unauthorized charges, ACH payments, and monitor for overcharges. Cash Tyme must also amend their advertisements to correctly state the Annual Percentage Rate, make its privacy notice clear and conspicuous, and refund all un-refunded customers.

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