The Consumer Financial Protection Bureau (“CFPB”), in conjunction with 41 US states and the District of Columbia, recently resolved a multistate investigation concerning lease finance company Tempoe’s business practices. The resolution followed a comprehensive evaluation of Tempoe’s leasing activities, which the CFPB and several states considered exploitative and ultimately harmful to consumers.
As a result of this investigation, Tempoe has agreed to cancel all existing leases which reportedly mounts up to $33 million. This concession will likely have substantial financial implications for the company, but it is only one part of the settlement requirement. Tempoe will likewise pay a hefty penalty of $2 million to the CFPB and a further $1 million distributed among the 41 involved states, as announced in a press release.
State press releases pertaining to the settlement, including those from North Carolina and Connecticut, show broad state-level support for the enforcement against Tempoe. This drawdown on predatory leasing companies underscores a wider trend of regulators and legal systems increasingly prioritizing consumer protection.
The legal community, including corporations and law firms, would do well to note the seriousness with which regulatory bodies like CFPB are addressing malpractices of this nature. Firms should reassess their involvement with lease finance companies to ensure full compliance with consumer protection laws and avoid facing similar enforcement actions.