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CFPB settles payday lending enforcement action

Joe Mont | August 14, 2018

A federal district court in the Western District of Missouri has approved a settlement between the Consumer Financial Protection Bureau, Richard Moseley, Sr., Richard Moseley, Jr., and 20 interrelated corporate entities they controlled for the unlawful origination and servicing of short-term, small-dollar online loans to consumers nationwide.

The Bureau’s complaint alleges that the defendants obtained consumers’ sensitive personal and financial information from third-party data brokers, then used that information to access their bank accounts without authorization.

According to the CFPB’s complaint, the Hydra Group deposited loans in consumers’ bank accounts, then debited biweekly “finance charges” indefinitely. In many cases, consumers never saw loan agreements and were not aware of the account activity until after the loan was deposited and finance...

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