Fintech lender Enova says CFPB probing loan processing

Fintech lender Enova says CFPB probing loan processing

(Reuters) – The U.S. Shopper Monetary Safety Bureau is investigating loan processing points at fintech lender Enova Worldwide Inc, the corporate mentioned on Thursday.

Enova self-reported a number of unspecified points and is cooperating with the regulator and repaying prospects, the corporate mentioned in an earnings announcement Thursday.

The Chicago-based monetary expertise firm gives payday loans and different shopper and enterprise loans. The corporate has settled with the CFPB earlier than.

Throughout an investor name on Thursday, CEO David Fisher expressed hope of wrapping up the investigation rapidly.

“This is a routine process with the CFPB, particularly in our industry, and we have been through it with them in the past,” he mentioned.

In 2019, the corporate paid $3.2 million to settle with the CFPB after the regulator discovered that Enova had debited some prospects’ financial institution accounts with out their authorization between 2010 and 2018 and did not honor some accredited credit score extensions.

Enova didn’t admit to the allegations and mentioned on the time that the problems have been brought on by technical errors that affected lower than 0.2% of funds it had acquired.

In 2013, Enova’s then-parent firm Money America, paid a $5 million advantageous after the CFPB discovered Enova had overcharged veteran debtors and destroyed paperwork forward of a go to by inspectors.

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Jody Godoy

Jody Godoy reviews on banking and securities legislation. Attain her at [email protected]