Fintech lender Enova says CFPB is investigating loan processing

The Consumer Financial Protection Bureau (CFPB) seal is visible at their headquarters in Washington, USA REUTERS / Andrew Kelly

(Reuters) – The U.S. Consumer Financial Protection Bureau is investigating loan processing issues at fintech lender Enova International Inc, the company said Thursday.

Enova has self-reported several unspecified issues and is cooperating with the regulator and reimbursing customers, the company said in a results announcement Thursday.

The Chicago-based fintech company offers payday loans and other consumer and business loans. The company has already concluded an agreement with the CFPB.

In a call to investors Thursday, CEO David Fisher expressed hope that the investigation could be concluded quickly.

“This is a routine process with CFPB, especially in our industry, and we have experienced it with them in the past,” he said.

In 2019, the company paid $ 3.2 million to settle with the CFPB after the regulator found that Enova debited some customers’ bank accounts without their authorization between 2010 and 2018 and failed to honor certain extensions. approved credit lines.

Enova did not admit the allegations and said at the time that the problems were caused by technical errors affecting less than 0.2% of the payments it received.

In 2013, Enova’s parent company, Cash America, paid a fine of $ 5 million after the CFPB discovered that Enova overcharged senior borrowers and destroyed documents before a visit from inspectors.

Read more: U.S. consumer watchdog eyes Big Tech, lending to competition as recovery unfolds – testimonial

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