CFPB Successfully Uses UDAAP to Nix CashCall’s Efforts to Evade Usury Caps
CashCall sought to evade usury caps by teaming up with a tribal lender in what is being called a "rent-a-bank" scheme to take advantage of the bank's exemption from state usury limits. Loans ranged from $850 to $10,000, had upfront fees, lengthy repayment terms and annual interest rates ranging from 90% to 343%. The CFPB tackled CashCall's workaround as a violation of unfair, deceptive and abusive acts and practices, known as UDAAP. [9/2/16]
