We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Enova (ENVA) Faces $15M Fine for Loan Processing Errors
Read MoreHide Full Article
Enova International, Inc. (ENVA - Free Report) reached an agreement with the Consumer Financial Protection Bureau ("CFPB") to resolve an issue related to consumer loan processing errors. The company has agreed to pay a $15 million civil money penalty.
The CFPB noted that Enova engaged in “widespread illegal conduct including withdrawing funds from customers’ bank accounts without their permission, making deceptive statements about loans, and cancelling loan extensions.”
The CFPB also said that the company violated an order from a $3.2 million penalty it paid in 2019. Effectively, CFPB has now restrained ENVA from offering certain consumer loans. The company is also required to tie executive compensation to its compliance with federal consumer financial protection rules.
Markedly, the majority of issues, arising from unintentional technical systems and processing errors, were self-reported by ENVA to the CFPB. The company has addressed these issues and provided appropriate redress to affected customers.
Management remarked that it will continue to invest in technology, systems and compliance processes to prevent, identify and ensure proper resolution of errors.
Some of the improvements made by the company include the implementation of a centralized payment processing system and a team focused on mitigating errors arising from vendor or system lapses.
The company has also put in place enhanced processes and systems to identify potential customer impacts and speed up customer restitution.
Over the past six months, shares of ENVA have lost 7.9% against the industry’s growth of 2.4%.
Image Source: Zacks Investment Research
Currently, ENVA carries a Zacks Rank #5 (Strong Sell).
Citigroup Inc. (C - Free Report) is set to pay $25.9 million in fines and remedies for intentionally discriminating against Armenian Americans when they applied for credit cards, per the CFPB.
The CFPB found that Citigroup employees were trained to avoid approving applications of Armenian Americans as they were more likely to commit fraud. Employees referred to applicants as “bad guys” or as affiliated with organized crime.
A few months ago, Goldman Sachs (GS - Free Report) agreed to pay $6 million to the Securities and Exchange Commission (SEC) for not providing complete and accurate information in the blue sheets, which contain information regarding securities trading and transactions that are provided to various regulatory authorities.
Per the SEC’s findings, GS made more than 22,000 inadequate blue sheet submissions between 2012 and 2022, comprising 43 different types of errors that affected more than 163 million transactions.
The SEC stated that GS did not have adequate processes that could verify the accuracy of its electronic blue sheet submissions. Moreover, per the SEC, Goldman knowingly violated the recordkeeping and reporting provisions of the federal securities laws.
Hence, GS agreed to pay the fine levied on it and has undertaken remedial actions to rectify and improve the reporting systems and controls of the blue sheet submissions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Enova (ENVA) Faces $15M Fine for Loan Processing Errors
Enova International, Inc. (ENVA - Free Report) reached an agreement with the Consumer Financial Protection Bureau ("CFPB") to resolve an issue related to consumer loan processing errors. The company has agreed to pay a $15 million civil money penalty.
The CFPB noted that Enova engaged in “widespread illegal conduct including withdrawing funds from customers’ bank accounts without their permission, making deceptive statements about loans, and cancelling loan extensions.”
The CFPB also said that the company violated an order from a $3.2 million penalty it paid in 2019. Effectively, CFPB has now restrained ENVA from offering certain consumer loans. The company is also required to tie executive compensation to its compliance with federal consumer financial protection rules.
Markedly, the majority of issues, arising from unintentional technical systems and processing errors, were self-reported by ENVA to the CFPB. The company has addressed these issues and provided appropriate redress to affected customers.
Management remarked that it will continue to invest in technology, systems and compliance processes to prevent, identify and ensure proper resolution of errors.
Some of the improvements made by the company include the implementation of a centralized payment processing system and a team focused on mitigating errors arising from vendor or system lapses.
The company has also put in place enhanced processes and systems to identify potential customer impacts and speed up customer restitution.
Over the past six months, shares of ENVA have lost 7.9% against the industry’s growth of 2.4%.
Image Source: Zacks Investment Research
Currently, ENVA carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Misconduct by Other Companies
Citigroup Inc. (C - Free Report) is set to pay $25.9 million in fines and remedies for intentionally discriminating against Armenian Americans when they applied for credit cards, per the CFPB.
The CFPB found that Citigroup employees were trained to avoid approving applications of Armenian Americans as they were more likely to commit fraud. Employees referred to applicants as “bad guys” or as affiliated with organized crime.
A few months ago, Goldman Sachs (GS - Free Report) agreed to pay $6 million to the Securities and Exchange Commission (SEC) for not providing complete and accurate information in the blue sheets, which contain information regarding securities trading and transactions that are provided to various regulatory authorities.
Per the SEC’s findings, GS made more than 22,000 inadequate blue sheet submissions between 2012 and 2022, comprising 43 different types of errors that affected more than 163 million transactions.
The SEC stated that GS did not have adequate processes that could verify the accuracy of its electronic blue sheet submissions. Moreover, per the SEC, Goldman knowingly violated the recordkeeping and reporting provisions of the federal securities laws.
Hence, GS agreed to pay the fine levied on it and has undertaken remedial actions to rectify and improve the reporting systems and controls of the blue sheet submissions.