WASHINGTON, February 22 – The U.S. consumer watchdog and three state attorneys general are suing Libre by Nexus for allegedly attacking immigrants in U.S. detention centers by distorting bond payment fees and threatening borrowers who can not refund.
The Consumer Financial Protection Bureau (CFPB) and Attorneys General in New York, Massachusetts and Virginia sued Libre by Nexus and its parent company for alleged predatory practices that “tie immigrants to years of monthly payments. exorbitant, ”the agency said on Monday.
Nexus Services did not immediately respond to requests for comment.
Libre would have lured immigrants with misleading statements and falsely threatened them with possible re-arrest, detention or deportation while failing to make their repayments, regulators said in a statement.
The lawsuit, filed Monday against Libre, parent company Nexus Services Inc and company owners Micheal Donovan Richard Moore and Evan Ajin, aims to end the practices and obtain relief for the victims. The company has already made deals with other regulators over its controversial practices.
On Monday, CFPB acting director David Uejio in a statement described Libre as a “wolf in sheep’s clothing,” saying the bureau is prioritizing the case to send a signal that financial scams targeting communities color will not be tolerated.
“This case is a prime example of how people of color are being targeted in financial scams and the latent unfairness that is too often found in the market for financial products and services,” Uejio said in the statement. “The Bureau won’t take it.”
Follow NBC Latino on Facebook, Twitter and Instagram.