Fintech lender Enova says CFPB investigating loan processing

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The seal of the Consumer Financial Protection Bureau (CFPB) is seen at its headquarters in Washington, U.S., May 14, 2021. REUTERS/Andrew Kelly/File Photo

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(Reuters) – The U.S. Consumer Financial Protection Bureau is investigating loan processing issues at fintech lender Enova International Inc, the company said on Thursday.

Enova has reported several unspecified issues itself and is cooperating with the regulator and refunding customers, the company said in an earnings announcement Thursday.

The Chicago-based fintech company offers payday loans and other personal and business loans. The company has already settled with the CFPB.

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During an investor call on Thursday, CEO David Fisher expressed hope for a quick conclusion to the investigation.

“It’s a routine process with the CFPB, especially in our industry, and we’ve experienced it with them in the past,” he said.

In 2019, the company paid $3.2 million to settle with the CFPB after the regulator found Enova debited some customers’ bank accounts without their authorization between 2010 and 2018 and failed to honor certain extensions. credit approved.

Enova did not admit the allegations and said at the time that the problems were caused by technical errors that affected less than 0.2% of the payments it received.

In 2013, Enova’s parent company, Cash America, paid a $5 million fine after the CFPB found Enova had overcharged veteran borrowers and destroyed documents before a visit by inspectors.

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