Alleged deceptive deposit and loan products have caused a Florida lending company and its CEO to face a $1 million refund to depositors, the federal consumer financial protection agency said Thursday.
The Consumer Financial Protection Bureau (CFPB) said it filed a proposed settlement against Driver Loan, LLC, (of Doral, Fla.) and its CEO, Angelo Jose Sarjeant. The agency said the settlement, if entered by the court, would require the defendants to refund about $1 million in deposits to harmed consumers, stop deceptive practices, and pay a civil penalty of $100,000.
The bureau claims that Driver Loan and Sarjeant violated federal law by misrepresenting the risks associated with their deposit product and the annual percentage rate (APR) associated with the consumer loans they make.
In November, the agency filed suit against Driver and Sarjeant. The bureau alleged that the company and its leader since 2017 offered short-term, high-interest personal loans totaling more than $30 million, typically to drivers who work with ride-share companies. The loans range from $100 to $500 each and are repayable in 15 daily installments, the bureau said. It alleged that Driver Loan “deceptively markets its loans as having an APR of 440% when the actual APRs are about 975%.”