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Cash Express settles allegations of misleading consumers, withholding funds

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Saturday, November 23, 2024

Cash Express settles allegations of misleading consumers, withholding funds

Federal Gov
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WASHINGTON, D.C. — A Tennessee dollar lender has settled charges by the Consumer Financial Protection Bureau, alleging the company mislead customers and withheld money from check-cashing transactions.

According to the bureau, Cash Express, which provides high-cost, short-term loans and check cashing services, violated the Consumer Financial Protection Act (CFPA). Cash Express falsely threatened customers with legal action when debts were past date for any legal claims and also falsely threatened it would report negative credit information to consumer reporting agencies for late or missed payments, the bureau said. 

The bureau also alleged Cash Express withheld funds during cash-checking transactions for outstanding amounts on previous loans without disclosing it to consumers at the time of the transaction. 


According to the settlement agreement, Cash Express will pay nearly $32,000 in restitution to its customers as well as a $200,000 civil penalty. Cash Express is also prohibited from automatic deductions without certain conditions and from making misrepresentations about legal action threats or threats of consumer reporting activity. 

Cash Express operates more than 300 retail lending outlets in Tennessee, Kentucky, Alabama and Mississippi, according to the bureau. 

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