Cash Tyme Agrees to Pay $100,000 – Failure to Follow the Law
Published On: April 30, 2019
The Consumer Financial Protection Bureau (Bureau) 2/5/2019 announced a settlement with Cash Tyme, a payday retail lender with outlets in Alabama, Florida, Indiana, Kentucky, Louisiana, Mississippi, and Tennessee. Cash Tyme is the operating name for CMM, LLC, and its wholly owned subsidiaries in those states.
According to the consent order, the Bureau found that Cash Tyme violated the Consumer Financial Protection Act of 2010 by:
Failing to take adequate steps to prevent unauthorized charges;
Failing to promptly monitor, identify, correct, and refund overpayments by consumers;
Making collection calls to third parties named as references on borrowers’ loan applications that disclosed or risked disclosing the debts to those third parties, including to borrowers’ places of employment as well as to third parties who were themselves harassed by such calls;
Misrepresenting that it collected third-party references from borrowers on loan applications for verification purposes, when in fact it was using that information to make marketing calls to the references; and
Advertising unavailable services, including check cashing, phone reconnections, and home telephone connections, on the storefronts’ outdoor signage where such advertisements contained information that was likely to be deemed important by consumers and likely to affect their conduct or decision regarding visiting a Cash Tyme store.
Failure to provide initial privacy notices to borrowers and failed to follow the Truth in Lending laws.
Also, the Bureau found that Cash Tyme violated the Gramm-Leach-Bliley Act and Regulation P by failing to provide initial privacy notices to borrowers. The Bureau also found that Cash Tyme violated the Truth in Lending Act and Regulation Z when it failed to include a payday loan fee charged to Kentucky customers in the annual percentage rate (APR) in loan contracts and advertisements, and rounded APRs to whole numbers in advertisements; and when it published advertisements that included an example APR and payment amount that was based on an example term of repayment, without disclosing the corresponding repayment terms it had used to calculate that APR.
Under the terms of the consent order, Cash Tyme must, among other provisions, pay a civil money penalty of $100,000.
Who uses payday or title loan companies? Typically the most desperate who have no other place to go for money to pay necessities, such as food, rent or a car loan. What happens when they sign this type of outrageous loan? The borrower finds that the terms of the loan were lies. They end up borrowing more money to pay the loans, while not paying their rent or mortgage and not buying food. If it was a car title then they will lose their car.
It appears that the cost of payday and title loans is as much as 400% to 700% interest. Most state laws would not allow this type of loan, but the payday loan companies have taken these loans to states that permit this type of lending, or to foreign countries, or Indian reservations. Doubt me? Read the links below.
By Diane Drain|Published On: April 30th, 2019|Last Updated: August 2nd, 2020|
Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.
*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*
5 / 5
“You folks are the BEST OF THE BEST in Arizona.” M.H.
You and Jay are the best attorneys I have ever had or needed and thank God for the Honorable Robert Gottsfield in recommending you folks – I would have never made it through the entire process without you and Jay and God Bless you both always and stay in touch as well. You folks are the BEST OF THE BEST in Arizona.
5 / 5
“My only regret is that I didn’t find Diane sooner.” K.H.
I can’t say enough good things about Diane. The way she handled my not typical circumstances was amazing. I was very nervous to start the bankruptcy process but Diane just has a very comforting way of explaining the whole process. My only regret is that I didn’t find Diane sooner. If you find yourself in a financial situation that you can’t correct on your own, please Call Diane Drain as soon as possible.
5 / 5
“Filing for bankruptcy can be a stressful life event” R.A.
Filing for bankruptcy can be a stressful life event, and selecting the right attorney can add to this stress. Diane and Jay were a pleasure to work with, and it is obvious that they are passionate about helping people get their life back on track. I would highly recommend them if you need a bankruptcy attorney.
CFPB Submits 2020 Report to Congress on the Administration of the Fair Debt Collection Practices Act Report highlights commitment to protect consumers during the COVID-19 Pandemic The Consumer Financial Protection Bureau (CFPB) released the [...]
We are a debt relief agency; we help individuals and small businesses through the bankruptcy process. Attorney Advertising. This website is designed for general information only. Any information you obtain from this website should not be construed as legal advice, nor as grounds for forming an attorney-client relationship. You should consult an attorney for information on obtaining formal legal advice.