Loan Company Ordered to Cease-and-Desist; Charged with False and Misleading Statements About Restructuring Policies for Delinquent Loans

Public cease-and-desist proceeding against respondent, a financial institution that, through its subsidiaries, was a provider of a variety of loan products to consumers in the U.S., the U.K. and Canada. The SEC found that respondent misrepresented its policies permitting the restructuring of delinquent loans (and the resetting of such loans to “current”), by falsely stating that it only restructured delinquent loans after receiving a certain number of consecutive payments and after obtaining evidence that the cause of the delinquency had been cured. Its delinquency rate – a key measure of the company’s financial condition – thus was skewed/unreliable.