On September 11, the Consumer Financial Protection Bureau (CFPB) issued a consent order against Tempoe, LLC, a nonbank consumer finance company. Tempoe has been allegedly violating various regulations including the Consumer Financial Protection Act (CFPA), Consumer Leasing Act, and Regulation M.
On that same day, it was made public that Tempoe had also agreed to a parallel settlement with 41 states as well as the District of Columbia. This settlement intends to resolve a multi-state investigation into the same alleged misconduct. The terms of this settlement, however, have not been disclosed in detail.
This action by the CFPB marks another instance of its increased scrutiny over nonbank entities for potential consumer harm. As lawyers and professionals in the corporate world, it’s crucial to monitor these regulatory developments and assess their potential impact on businesses.