CFPB acts against online lender for deceptive practices

The Consumer Financial Protection Bureau has announced action taken against a Delaware-based online lender, Integrity Advance, LLC, and its CEO, James R. Carnes, for deceiving consumers about the cost of short-term loans. The Bureau alleges that the company’s contracts did not disclose the costs consumers would pay under the default terms of the contracts. The Bureau also alleges that the company unfairly used remotely created checks to debit consumers’ bank accounts even after the consumers revoked authorization for automatic withdrawals. The CFPB filed an administrative lawsuit seeking redress for harmed consumers, as well as a civil money penalty and injunctive relief. Under the Bureau's Rules of Practice, the Notice of Charges in the suit may be released 10 days after it has been served on the company.