CFPB appeals $10 million order in payday lender suit

Courts CFPB Appellate Ninth Circuit Payday Lending

On March 27, the CFPB filed a notice of appeal to the U.S. Court of Appeals for the 9th Circuit in response to a district court’s order that an online loan servicer and its affiliates pay a $10 million penalty for offering high-interest loans in states with usury laws barring the transactions—a penalty which fell far short of the $50 million the CFPB had requested. As previously covered in InfoBytes, the district court found that a lower statutory penalty was more appropriate than the CFPB’s requested amount because the CFPB failed to show the company “knowingly violated the CFPA.” It further rejected the Bureau’s request for restitution and denied a request for a permanent injunction. The notice of appeal seeks review of all parts of the final judgment as well as the parts of the findings of facts and conclusions of law that are adverse to its position.