The Consumer Financial Protection Bureau has reached a settlement with Triton Management Group, Inc., and related entities, relating to alleged violations of the Truth in Lending Act and implementing Regulation Z, as well as the Consumer Financial Protection Act, the agency announced. Triton is a small-dollar lender operating in Alabama, Mississippi, and South Carolina, and does business under several names including “Always Money” and “Quik Pawn Shop.” The companies entered into a consent order pursuant to a stipulation, without admitting or denying any wrongdoing.
According to the Bureau, Triton violated the TILA and Reg. Z by failing to properly disclose finance charges associated with Mississippi auto title loans. The Bureau further determined that these actions constituted deceptive acts or practices in violation of the CFPA. In addition, Triton’s advertisements failed to disclose annual percentage rate and other information required by TILA, the Bureau alleged.
The order imposed a judgment against Triton and its related companies in the amount of $1,522,298, which represents the undisclosed finance charges consumers paid on their Triton loans. However, the order suspends payment of the judgment subject to Triton’s payment of $500,000 in redress to affected consumers, who are expected to number approximately 1,309, representing approximately 2,136 loans.
The order also prohibits Triton and its related businesses from:
- using or disclosing payment schedules for title pledges or loans that contradict or obscure the actual finance charge or other terms of the obligation between the parties; and
- misrepresenting, in connection with the marketing or offering of consumer credit, the fees charged for loan extensions, the finance charge and annual percentage rate for loans, and any other terms or conditions for credit.
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