Midlands Military Matters: TitleMax fined $15 million for unlawful loans to military families

The company TitleMax is in serious hot water with the government and the military.

COLUMBIA, S.C. (WOLO)— The company TitleMax is in serious hot water with the government and the military.

The Consumer Financial Protection Bureau’s Action requires TitleMax to pay more than $5 million to consumers, and a $10 million civil penalty.

The government also alleges TitleMax doctored information about borrower’s military status. Why?

So they could provide the loans. Lenders are prohibited by the Military Lending Act from making title loans to active duty troops or their dependents.

Those small-dollar loans come withe expensive charges and short terms, usually 30 days or less, in which borrowers put up their vehicle as collateral.

CFPB ordered TitleMax to stop illegal lending practices.

TitleMax neither admits nor denies any of the findings or conclusions of law, according to the consent order.