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CFPB continues enforcement trends with consent order for Military Lending Act and EFTA violations | Ballard Spahr LLP

On December 30, 2020, the CFPB announced a consent order with Omni Financial of Nevada, Inc. based on alleged violations of the Military Lending Act (MLA) and Electronic Funds Transfer Act (EFTA).  This is the second consent order announced as part of a sweep of investigations for potential MLA violations. According to the CFPB, Omni as an installment lender making tens of thousands of loans annually, generally in smaller amounts, ranging from $500 to $10,000.  Over 90% of Omni’s loans are extended to servicemembers or their dependents who are protected by the MLA.  Less than 10% of Omni’s loans are extended to borrowers who are not protected by the MLA, such as civilians and military retirees.

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