Cash America International, Inc. (NYSE:CSH) today announced that it has reached a settlement with the Consumer Financial Protection Bureau. Without admitting or denying any of the facts or conclusions made by the CFPB from its review, Cash America agreed in a consent order to pay a penalty of $5 million and to set aside $8 million for a period of 180 days to fund any further payments to eligible Ohio customers who make valid claims in connection with its previously disclosed Ohio voluntary reimbursement program. Cash America has already refunded approximately $6.4 million in connection with this program. Cash America previously disclosed that the CFPB was contemplating an enforcement action. “We fully cooperated with the CFPB in connection with its examination of our business,” said Daniel R. Feehan, Cash America International, Inc. Chief Executive Officer and President. “Now that we have completed the initial CFPB review process and entered into this settlement, we will continue to focus on serving our customers while working to develop additional compliance programs as required by the CFPB.” The consent order relates to issues self-disclosed to the CFPB during its 2012 examination of Cash America. The first issue includes the improper preparation of certain court documents in connection with collections lawsuits initiated by Cash America in Ohio. Cash America previously disclosed this situation in December 2012 and announced that it implemented a voluntarily reimbursement program for affected customers. The second issue involves a limited number of loans extended to consumers who may have been members of the military at rates in excess of the annual percentage rate permitted by the Military Lending Act. Cash America corrected the systems errors that permitted these loans to be made and refunded approximately $33,500 to the affected customers. The last issue relates to certain failures to timely provide and preserve records and information in connection with the CFPB’s examination of Cash America. As a result of the CFPB’s review, Cash America is in the process of enhancing its compliance management programs and implementing additional procedures and controls to address the issues and will provide periodic reports to the CFPB.
About the CompanyAs of September 30, 2013, Cash America International, Inc. (the “Company”) operated 995 total locations offering specialty financial services to consumers, which included the following:
- 860 lending locations in 22 states in the United States primarily under the names “Cash America Pawn,” “SuperPawn,” “Cash America Payday Advance,” and “Cashland;”
- 47 pawn lending locations in central and southern Mexico under the name “Cash America casa de empeño;” and
- 88 check cashing centers (all of which are unconsolidated franchised check cashing centers) operating in 13 states in the United States under the name “Mr. Payroll.”
- in 32 states in the United States at http://www.cashnetusa.com and http://www.netcredit.com;
- in the United Kingdom at http://www.quickquid.co.uk, and http://www.poundstopocket.co.uk;
- in Australia at http://www.dollarsdirect.com.au; and
- in Canada at http://www.dollarsdirect.ca.