Corrective action gives CFPB supervisory authority to correct potential legal violations
An installment lender offering medium term loans at interest rates up to 36% APR is facing scrutiney from a key federal regulator.
The Consumer Financial Protection Bureau (CFPB) issued an order designating World Acceptance as "under supervision."
The order comes as the CFPB seeks to prevent or correct possible legal violations. The order does not mean World Acceptance has violated any laws. Rather, the order is an attempt to identy potential wrongdoing and give the company the chance to rectify any legal violations.
The supervision by the CFPB may suggest consumer complaints or other information indicating activity meriting investigation. By placing an entity under supervision, the CFPB hopes to protect consumers while also allowing businesses to correct unintentional legal oversights.
Should wrongdoing be found, World Acceptance would be given an opportunity to take corrective action before a fine or other punitive action is issued by the CFPB.
