© Reuters. FILE PHOTO: The seal of the Consumer Financial Protection Bureau (CFPB) is seen at their headquarters in Washington, D.C., U.S., May src4, 202src. REUTERS/Andrew Kelly
(Reuters) – The U.S. consumer watchdog on Thursday fined TitleMax $src0 million, saying the Georgia-based title lender illegally made thousands of auto loans to military borrowers over a five-year period, often charging interest rates well above legal limits.
TitleMax did not immediately respond to a request for comment.
The Consumer Financial Protection Bureau said the business, which comprises an array of entities operating under TMX Finance LLC, was a repeat offender. The CFPB fined TitleMax $9 million in 20src6 for allegedly misrepresenting loan costs and using “high pressure” debt collection practices, the bureau said in a statement.
CFPB Director Rohit Chopra called TitleMax’s behavior “predatory,” citing the lender’s steps to hide allegedly illegal behavior by doctoring borrowers’ personal information so they would not be identified as military service members or their dependants.
From 20src6 to 202src TitleMax made nearly 2,700 prohibited auto loans to borrowers covered by the Military Lending Act and charged illegal fees on about src5,000 loans, CFPB said.
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