22
Aug

Your Payday Loan Software Vendor Can Kill You

Richard Cordray with the CFPB stated, “Our investigation found that for three years First Investors had a flawed computer system –  purchased from a vendor – that provided inaccurate information to credit reporting agencies. When First Investors discovered the problem in April 2011, it notified the vendor but did nothing more. The company did not replace the system or take any steps to correct the inaccurate information it had supplied. Instead, it simply continued for years to use a system that it knew was flawed.”

“There were all kinds of inaccuracies reported by First Investors. The company frequently understated how much consumers were paying toward their debt. It overstated the amount past due. It misreported the dates when consumers became delinquent. And it inflated the number of delinquent payments… READ MORE

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