WASHINGTON—The Consumer Financial Protection Bureau has announced a settlement with Enova International, Inc., an online lender that extends unsecured payday
and installment loans, and lines of credit based in Chicago.
As described in the consent order, the Bureau found Enova violated the Consumer Financial Protection Act of 2010 by debiting consumers’ bank accounts without authorization. While consumers authorized Enova to deduct payments from certain accounts, the company in many instances debited different accounts that the consumers had not authorized it to use. The Bureau found also that Enova failed to honor loan extensions it granted to consumers.
Under the terms of the consent order, Enova is, among other things, barred from making or initiating electronic fund transfers without valid authorization and must pay a $3.2 million civil money penalty.
A copy of the consent order is available here.