On September 26, 2016, the Consumer Financial Protection Bureau (CFPB) entered into a consent order with one of the country’s largest auto title lenders, TMX Finance LLC, the parent company of TitleMax. The CFPB took action against TMX Finance for engaging in unfair, deceptive, and abusive lending acts and practices, and for engaging in unfair and illegal debt collection tactics, in violation of the Consumer Financial Protection Act of 2010 (CFPA), 12 U.S.C. §§ 5531 & 5536(a)(1)(B).
TMX Finance, based in Georgia, offers title and personal loans to consumers in 18 states through state subsidiaries including TitleMax, TitleBucks and InstaLoan. These companies offered consumers single-payment auto title loans of $100 up to $10,000, usually 30 days in length, on lien-free vehicles with their title as collateral. These loans carried high interest rates, as high as 300 percent APR. Continue Reading