On September 11, the Consumer Financial Protection Bureau (CFPB) issued a consent order against an Ohio-based nonbank consumer finance company. The company, who remains unnamed, was cited for deceptive practices in connection with consumer leasing agreements. This action by CFPB is part of a parallel multi-state settlement that also involves 41 states and the District of Columbia, which all addressed the respondent’s alleged misconduct.
The company has allegedly been operating through major retailers, secretly hiding contractual terms and costs from consumers. This has led consumers to unintentionally enter into costly contracts. The handling of these allegations has been overseen by Orrick, Herrington & Sutcliffe LLP.
This news draws attention to the importance of transparency in consumer finance, particularly considering the CFPB’s increasing focus on consumer leasing agreements. The settlements and actions taken against such deceptive practices in this sector act as a stark reminder to corporations of the stringent requirements for fair dealings with consumers, and the severe consequences of non-compliance.
For the detailed chronicle of this incident, click here.