A U.S. consumer finance regulator sued a subsidiary of fintech lender Curo Group Holdings Corp on Tuesday, alleging it pushed struggling borrowers to refinance short-term loans to keep them in debt and reap fees, Reuters reported. The U.S. Consumer Financial Protection Bureau (CFPB) said in the lawsuit filed in federal court in Greenville, S.C., that Heights Finance Holding Co. violated laws against unfair and abusive lending practices by "churning" loans through repeated refinancing, putting around 10,000 borrowers in continuous debt from 2013 to at least 2020. The agency sought an unspecified fine, refunds for harmed consumers, and an order barring the company from violating the law. CFPB Director Rohit Chopra said that what the company "sold as a financial lifeline was, in reality, pushing customers into financial quicksand." Curo issued a statement on Tuesday saying the case related to small loans originated by subsidiaries of Heights Finance before Curo acquired the company for $360 million in late 2021 from private equity firm Milestone Partners.
