CFPB v. TMX Finance LLC

TMX Finance LLC allegedly violated the Military Lending Act by extending thousands of title loans to covered borrowers; extending loans that exceeded the MLA’s 36% Military Annual Percentage Rate (MAPR) cap; failing to make disclosures required under the MLA; extending loans to covered borrowers with MLA-prohibited arbitration clauses; and extending loans to covered borrowers with onerous notice requirements. TMX Finance LLC also allegedly engaged in unfair acts or practices in violation of the Consumer Financial Protection Act of 2010 (CFPA) by charging borrowers for an insurance product that provided no coverage on about 15,000 loans. TMX Finance LLC further allegedly understated the finance charges and annual percentage rates of those loans, violating the Truth in Lending Act and CFPA, according to the CFPB.

Summary generated from official Consumer Financial Protection Bureau press release