Errors have been addressed and a settlement,
aligned with current Enova business practices, has been
reached
CHICAGO, Nov. 15,
2023 /PRNewswire/ -- Enova International, Inc. (NYSE:
ENVA), a leading financial technology company powered by machine
learning and world-class analytics, announced today that it has
reached an agreement with the Consumer Financial Protection Bureau
("CFPB") regarding consumer loan processing issues that arose from
unintentional technical systems and processing errors which have
since been addressed. The majority of items were self-reported by
Enova to the CFPB and Enova provided appropriate redress to
impacted customers. Enova has agreed to pay a $15 million civil money penalty. The settlement
is not expected to have a material impact on the Company or its
operations.
"We take any errors in our systems very seriously, especially
those that impact our customers, and will continue to invest in our
technology, systems and compliance processes to prevent, identify
and ensure appropriate resolution of errors," said Ranning Li,
President of Consumer Lending at Enova. "We served millions of
customers and processed tens of millions of transactions during the
period the CFPB selected. While the items identified in this order
represent a small fraction of our customers and transactions, we
remain committed to treating customers fairly and enhancing
business practices to reduce errors and address issues promptly.
The actions we have agreed to with the CFPB align with our current
business operations and support our ability to deliver high-quality
products and services for our
customers."
Enova fully cooperated with the CFPB throughout its
investigation. Although Enova disagrees with the CFPB's
characterizations of the issues, the Company is pleased to have
this matter behind them and remains focused on continuing to
support customers through industry-leading innovation and
delivering high-quality financial products to consumers who fall
into the gaps left by traditional banks.
Enova has made enhancements to several areas of its business as
set forth below. The actions agreed to in the settlement align with
Enova's current business practices and do not materially change any
of its product offerings.
- Payment Processing. In 2021, Enova implemented a centralized
payment processing system with a dedicated team to mitigate errors
arising from vendor or systems errors, and a critical system code
deployment framework that allows for testing and ongoing monitoring
of transactions.
- Reducing Customer Impacts. Enova has implemented enhanced
processes and systems to quickly identify potential customer
impacts and expedite customer restitution.
- Single-pay Products. In 2022, Enova sunset its short-term
single payment payday loan product (the last single payment loan
was originated in August 2022). Enova
has agreed to not resume originations of this product or use
information obtained solely in connection with those loans to
further market to those customers during the next seven years.
While the errors identified in this settlement are similar to
those addressed in the 2019 order, they do not arise from
deliberate attempts to avoid law, but instead resulted from
unintended computer and system errors. However, with any complex
system or process, it is impossible to eliminate all errors.
Since there is no established regulatory standard for satisfactory
performance, any subsequent errors, no matter how infrequent or
insubstantial, constitute an offense. The errors identified in this
order represent a very small percentage of customers and
transactions Enova handled during this period. Enova's compliance
environment successfully identified most of the errors, acted to
correct the system or process root causes and took actions to
provide restitution for consumers who may have been harmed.
Enova is committed to closing the gap in the mainstream
financial system by providing transparent, competitively priced
products and services to consumers and small businesses that
traditional bank lenders don't offer. We understand and appreciate
the role of regulators in providing clear guidance and sound
regulation based on facts and current market capabilities and will
work with the CFPB to rapidly complete the agreed upon actions.
About Enova
Enova International (NYSE: ENVA) is a
leading financial services company with powerful online lending
that serves small businesses and consumers who are underserved by
traditional banks. Through its world-class analytics and machine
learning algorithms, Enova has provided more than 9 million
customers with over $52 billion in
loans and financing. You can learn more about the company and its
portfolio of businesses at www.enova.com.
Cautionary Statement Concerning Forward Looking
Statements
This release contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 about the business, financial condition and prospects of
Enova. These forward-looking statements give current expectations
or forecasts of future events and reflect the views and assumptions
of Enova's senior management with respect to the business,
financial condition and prospects of Enova as of the date of this
release and are not guarantees of future performance. The actual
results of Enova could differ materially from those indicated by
such forward-looking statements because of various risks and
uncertainties applicable to Enova's business, including, without
limitation, those risks and uncertainties indicated in Enova's
filings with the Securities and Exchange Commission ("SEC"),
including our annual report on Form 10-K, quarterly reports on
Forms 10-Q and current reports on Forms 8-K. These risks and
uncertainties are beyond the ability of Enova to control, and, in
many cases, Enova cannot predict all of the risks and uncertainties
that could cause its actual results to differ materially from those
indicated by the forward-looking statements. When used in this
release, the words "believes," "estimates," "plans," "expects,"
"anticipates" and similar expressions or variations as they relate
to Enova or its management are intended to identify forward-looking
statements. Enova cautions you not to put undue reliance on these
statements. Enova disclaims any intention or obligation to update
or revise any forward-looking statements after the date of this
release.
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SOURCE Enova International, Inc.