February 23, 2023

A collection of corporate entities known as TitleMax has been ordered to pay a $10 million civil monetary penalty and $5 million in consumer relief for defrauding military families and other consumers while providing auto title loans.  TitleMax, which extends short-term, high-cost loans secured by auto titles, was found to have charged consumers nearly three times over the 36% annual interest rate cap.  This is not the first time TitleMax has been accused of similar misconduct; in 2016, the company was ordered to pay a $9 million penalty to settle similar charges.  CFPB