- On December 16, 2016, the Consumer Financial Protection Bureau (CFPB) announced an enforcement action against Moneytree, Inc., for deceptive advertising and collection practices.
According to the consent order, the CFPB found that Moneytree:
- Used deceptive online advertisements that implied the cost of cashing consumers’ tax refund checks was $1.99, when it was actually 1.99% of the total;
- Deceptively told consumers that they could lose their vehicles if they did not repay loans, despite the fact that the loans were not secured by the consumers’ vehicles; and
- Withdrew money on at least 700 occasions from consumers’ accounts without first obtaining proper authority.
Moneytree entered into a consent order with the CFPB to resolve the issues and agreed to:
- Pay $255,000 in restitution to consumers;
- End its deceptive practices; and
- Pay a $250,000 civil penalty.