CFPB takes action against offshore payday lender

The Consumer Financial Protection Bureau (CFPB) announced Tuesday that it has filed a lawsuit against an offshore payday lender, alleging it violated the Dodd-Frank Act and collected money from consumers illegally.

NDG Enterprise, which distributes and collects Internet payday loans in all 50 states, is accused of collecting loan amounts and fees that consumers did not actually owe or had no obligation to repay, and threatening consumers with lawsuits and imprisonment for nonpayment.

NDG Enterprise owns NDG Financial Corp., Northway Financial Corporation and Northway Broker Ltd., based in Malta, as well as E-Care Contact Centers, Ltd., Blizzard Interactive Corp., New World Consolidated Lending Corp., New World Lenders Corp., Payroll Loans First Lenders Corp. and New World RRSP Lenders Corp., of Canada, all of which are named in the lawsuit. 

Sagewood Holdings Ltd., which owns a majority interest in NDG Financial Corp., is also named in the complaint.

“We are taking action against the NDG Enterprise for collecting money it had no right to take from consumers,” CFPB Director Richard Cordray said in a news release. “Companies making loans within the U.S. have to comply with federal law, and the Consumer Bureau will work to ensure that American consumers receive the protections and fair treatment they deserve.” 

In states like New York where payday lending is illegal, CFPB said the consumer had no obligation to repay a loan from NDG Enterprise.

Tags Business CFPB Credit Debt Financial economics Loans Payday loan Personal finance United States Consumer Financial Protection Bureau

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