In April 2015, the CFPB, along with the Navajo Nation Department of Justice, sued Southwest Tax Loans and J Thomas Development of New Mexico for allegedly “trick[ing] low-income individuals into taking out high-interest tax refund anticipation loans.” The CFPB claimed the two lenders violated consumer financial laws by offering “consumers loans at high interest rates in anticipation of the tax refund that the client would receive.” The CFPB alleged that the lenders “misrepresent[ed] the loans’ interest rates” and “fail[ed] to disclose that a consumer’s tax refund was available.” As of February 2015, the case is ongoing.

• The CFPB with the Navajo Nation Department of Justice filed a lawsuit against S/W Tax Loans, Inc. formerly d/b/a Fast Refund Loans, Inc.; J Thomas Development of NM, Inc. formerly d/b/a H&R Block; Dennis R. Gonzales; and Jeffrey Scott Thomas in US District Court District of New Mexico. [Navajo Nation and CFPB v. S/W Tax Loans, Inc. formerly d/b/a Fast Refund Loans, Inc.; J Thomas Development of NM, Inc. formerly d/b/a H&R Block; Dennis R. Gonzales; and Jeffrey Scott Thomas, case no. 1:15-cv-00299, filed 04/14/15]

• The CFPB with the Navajo Nation Department of Justice filed a lawsuit against two New Mexico lenders, Southwest Tax Loans, Inc. and J Thomas Development of NM, Inc. and its owners, for allegedly “trick[ing] low-income individuals into taking out high-interest tax refund anticipation loans.” The CFPB and Navajo Nation claimed “tax filers who qualified for the Earned Income Tax Credit were being steered toward these high-interest loans.” [“Civil suit targets predatory lenders,” Associated Press, 04/27/15]

• The CFPB claimed the two lenders violated consumer financial laws by offering “consumers loans at high interest rates in anticipation of the tax refund that the client would receive.” The CFPB and the Navajo Nation alleged that the two lenders “misrepresent[ed] the loans’ interest rates” and “fail[ed] to disclose that a consumer’s tax refund was available.”

The CFPB and Navajo Nation issued a proposed consent order against the two lenders that “would prohibit for five years the named individuals from offering financial products associated with tax refunds and from investing, financing, or working for any entity that offers tax refund products.” In addition, the CFPB and Navajo Nation are “seeking $254,267 in restitution and $438,000 in civil penalties.” [Allyson B. Baker and Peter Frechette, “United States: CFPB Targets Misleading Advertising And Communications In Multiple Enforcement Actions And Other Updates,” Mondaq Business Briefing, 04/18/15]

• As of February 2017, the case is ongoing. [Enforcement Actions, “S/W Tax Loans, Inc. formerly d/b/a Fast Refund Loans, Inc.; J Thomas Development of NM, Inc. formerly d/b/a H&R Block; Dennis R. Gonzales; and Jeffrey Scott Thomas,” Consumer Financial Protection Bureau, accessed 02/24/17]