On September 21, the Consumer Financial Protection Bureau (CFPB) announced that it filed five individual administrative lawsuits against Arizona title lenders.
Each suit concerns allegations that the title lenders’ online advertisements failed to disclose title annual percentage rates, in violation of the Truth in Lending Act. Instead, the Bureau alleged, the companies advertised a periodic interest rate for their loans without also displaying the corresponding annual percentage rate. One lender instructed consumers to multiply the advertised rate by twelve, but did not inform consumers that the resulting rate was their annual percentage rate.
Each complaint seeks civil monetary penalties and administrative orders that would require the lenders to change their practices.