Mission Hills payday lender James Carnes to appeal multimillion dollar fine

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The Consumer Financial Protection Bureau said Mission Hills payday lender James Carnes and his company provided payday loans that deceived consumers about the cost of their loans and continued to debit borrower accounts after canceling the loan. ‘authorisation.

The national law review

Lawyers for Mission Hills businessman James Carnes consider appealing judge recommendation that he and his company pay $ 38.1 million in restitution for a payday loan company that a federal agency said encouraged illegal lending.

On September 27, an administrative judge also recommended Carnes pay a civil fine of $ 5.4 million in connection with his company, Integrity Advance.

Justice Parlen McKenna’s ruling comes after the Consumer Financial Protection Bureau, an independent federal oversight agency, said Carnes and Integrity Advance extended payday loans that deceived consumers about the cost of their loans and continued to debit borrowers’ accounts after canceling the authorization.

Carnes’ notice of appeal characterized the outcome of the case as “arbitrary, capricious, abuse of discretion, not in accordance with the law and / or not supported by reliable, probative and substantial evidence” . Carnes’ attorney declined to comment on the appeal.

The consumer protection agency itself ran into problems Tuesday after a federal appeals court ruled the agency’s structure unconstitutional. A three-judge panel of the United States Court of Appeals for the District of Columbia in Washington, DC, ruled that the CFPB gave too much power to its director, without other branches of government controlling it.

“The office does not agree with the court’s decision,” CFPB spokeswoman Moira Vahey said in a statement.


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John McTaggart

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