BCFP Announces Settlement With Installment Loan Companies

Installment lender and subsidiaries fined for alleged violations of Consumer Financial Protection Act and FCRA.

6/14/2018 1:00 PM

BCFP Announces Settlement With Installment Loan Companies

The Bureau of Consumer Financial Protection and Security Group Inc., a provider of installment loans, reached a settlement Wednesday after the company allegedly conducted improper debt collection and credit reporting practices.

Security Group Inc. and its subsidiaries agreed to pay a $5 million civil penalty and correct certain inaccurate information about consumers they provided to credit reporting agencies, according to a news release from the bureau. The companies are also barred from certain collection practices.

They reportedly violated the Consumer Financial Protection Act and Fair Credit Reporting Act.

In a statement, Security Group “noted it didn't admit to any of the bureau's claims and said it disagrees with the allegations and ‘strongly disputes any wrongdoing,’” MarketWatch reports. This is the second enforcement action under Acting Director Mick Mulvaney’s leadership, according to the article.

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