A collection of Canada-based payday lenders faces a lawsuit filed by the U.S. Consumer Financial Protection Bureau (CFPB), CBSNews.com reported yesterday. The CFPB on yesterday alleged that the companies collected money that wasn't owed and issued illegal loans with outrageous interest rates. Because many of the loans from companies connected to NDG Enterprise, which were issued to consumers in all 50 states, were in violation of state usury laws, the agency said they're considered void. The CFPB said that it wants to stop the allegedly illegal lending and recover money for consumers. The lawsuit offered some examples of the fees and interest rates the companies were charging. APRs ranged from 599 percent to more than 700 percent on 14-day loans of $100-$1,500. In addition to interest, consumers were hit with fees of $23-$405 per loan depending on its amount. Those rates were in excess of limits set by numerous states.
