Fintech lender Enova says CFPB probing loan processing

(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 self-reported several unspecified issues and is cooperating with the regulator and repaying customers, the company said in an earnings announcement Thursday.

The Chicago-based financial technology company offers payday loans and other consumer and business loans. The company has settled with the CFPB before.

During an investor call on Thursday, CEO David Fisher expressed hope of wrapping up the investigation quickly.

“This is a routine process with the CFPB, particularly in our industry, and we have been through 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 that Enova had debited some customers’ bank accounts without their authorization between 2010 and 2018 and failed to honor some approved credit extensions.

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

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

Source: Reuters