Enova International Inc.’s stock
ENVA,
was down by 0.9% on Wednesday after the Chicago-based online lending company said it reached an agreement with the Consumer Financial Protection Bureau (CFPB) to pay a $15 million civil penalty. The company said the agreement came after, “consumer loan processing issues that arose from unintentional technical systems and processing errors which have since been addressed.” Enova said the majority of the issues were self-reported to the CFPB and that it fully cooperated with the government’s investigation. The penalty will not have a material impact on the company or its operations. In a separate statement, the CFPB said Enova, engaged in “widespread illegal conduct including withdrawing funds from customers’ bank accounts without their permission, making deceptive statements about loans, and cancelling loan extensions.” The CFPB said Enova also violated an order stemming from a $3.2 million penalty it paid in 2019. “For violating that order and continuing to break the law, Enova is now banned from offering certain consumer loans, must provide redress to the consumers it harmed, and is required to tie executive compensation to the company’s compliance with federal consumer financial protection laws,” the CFTC said. Enova said it “disagrees with the CFPB’s characterizations of the issues” but that it’s pleased to have the matter behind it.
