The Consumer Financial Protection Bureau or CFPB and the South Carolina Department of Consumer Affairs filed a lawsuit Tuesday in federal court against Katharine Snyder, Performance Arbitrage Company Inc., and Life Funding Options Inc. The companies, owned and operated by Snyder, brokered contracts offering high-interest credit to veterans, many of whom are disabled, and to other consumers.
The CFPB alleges that the companies and their owner violated the Consumer Financial Protection Act’s prohibition against deceptive practices.
The CFPB and South Carolina allege that Snyder and her companies misrepresented to consumers that the contracts the companies broker are valid and enforceable when the contracts are void under federal and state law; misrepresented to consumers that the product is a sale of payments and not a high-interest credit offer; and failed to inform consumers of the products’ interest rates.
Defendants brokered consumer loans with loan finance charges in excess of 12 percent per year.
The lawsuit seeks an injunction against Snyder and her companies, return of money to consumers, and a financial penalty.
