A U.S. consumer finance regulator sued a subsidiary of fintech lender Curo Group Holdings Corp. on Tuesday, alleging it pushed struggling borrowers to refinance short-term loans to keep them in debt and reap fees.
The agency sought an unspecified fine, refunds for harmed consumers, and an order barring the company from violating the law. The CFPB said that Heights Finance, which operates in Texas, Oklahoma, Alabama, Georgia, Tennessee, and South Carolina, took advantage of low income borrowers by not offering alternatives to refinancing, which carried a fee each time.
"Team look at the accounts that are begging for help. They are past due and are screaming they don't have the money to pay you so get to work selling them the benefits," a supervisor wrote in one email, according to the complaint.