(Reuters) – The US Consumer Watch and Attorneys General in three states are suing Libre by Nexus for claiming that they are exchanging immigrants in US detention centers by giving incorrect fees to pay bail and threatening borrowers who cannot repay. The Financial Protection Bureau and Advocates General in New York, Massachusetts and Virginia have sued Libre of Nexus and its parent company for alleged predators that "tie immigrants to years of unreasonable monthly payments," the agency said Monday.
Mike Donovan, President and CEO of Libre, said in a statement that the company welcomed the chance to defend itself in a courtroom against several state investigations.
Libre of Nexus is committed to serving its customers and "fighting for immigrants scarred by the torture of" civilian "immigration," Donovan said in a statement.
The company allegedly attracted immigrants with misleading statements. and wrongly threatened them with potential retaliation, detention or deportation when they did not make their repayments, regulators said in a statement.
The lawsuit, filed on Monday against Libre, parent company Nexus Services Inc. and Mr. Donovan and co-owners Richard Moore and Evan Ajin try to stop the practice and get help for the victims. The company has previously reached settlements with other regulators due to its controversial practices.
On Monday, the CFPB's acting director general, David Uejio, described in a statement Libre as a "wolf in sheep's clothing" and said the presidency was prioritizing the matter in order to send a signal. that financial fraud targeting color communities will not be tolerated.
"This case is an excellent example of how people with color are targeted at financial fraud and the latent injustice that all too often occurs in the market for financial products and services," Acting Director Uejio said in the statement. "The Bureau will not be responsible for that."