CFPB said the $5 million penalty was based on those violations

The CFPB said Wednesday that the company has already paid out about $6 million in refunds and agreed to set aside $8 million to cover future claims. Agency also said Cash America made payday loans at illegal rates to “more than 300 active duty servicemembers of dependents.” The Military Lending Act caps the annual interest rate on loans to servicemembers at 36 percent, whereas payday loans typically carry effective rates several times that. CFPB said the $5 million penalty was based on those violations, as well as actions by Cash America Enova Financial online lending unit that impeded the agency investigation.

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