Enova International Inc., a Chicago-based online lending company, has reached an agreement with the Consumer Financial Protection Bureau (CFPB) to pay a $15 million civil penalty. This penalty follows consumer loan processing issues that arose from unintentional technical systems and processing errors. While Enova disagrees with the CFPB’s characterizations of the issues, it is relieved to have the matter resolved.
Self-Reporting and Cooperation
Enova self-reported the majority of the issues to the CFPB and fully cooperated with the subsequent investigation. The company proactively addressed and resolved the unintentional technical systems and processing errors that caused the consumer loan processing issues.
Minimal Impact on Company Operations
Enova reassures stakeholders that the $15 million civil penalty will not have a material impact on the company or its day-to-day operations. While the financial ramifications are significant, Enova remains committed to serving its customers and meeting their financial needs.
CFPB Highlights Widespread Illegal Conduct
In a separate statement, the CFPB disclosed that Enova engaged in widespread illegal conduct. The violations included withdrawing funds from customers’ bank accounts without their permission, making deceptive statements about loans, and cancelling loan extensions. Additionally, Enova violated an order resulting from a previous $3.2 million penalty it paid in 2019.
Consequences and Restrictions for Enova
As a consequence of these violations, Enova is now banned from offering certain consumer loans. The company is also required to provide redress to the consumers it harmed. Furthermore, Enova must align executive compensation with its compliance with federal consumer financial protection laws.
Despite its disagreement with the CFPB’s characterizations, Enova is pleased to have the matter resolved. The company remains committed to transparency, accountability, and providing excellent service to its customers.