Attorneys for Mission Hills, Kan., businessman James Carnes plan to appeal a judge’s recommendation that he and his company pay $38.1 million in restitution for a payday lending business that a federal agency said promoted illegal loans.
An administrative law judge on Sept. 27 also recommended that Carnes pay a $5.4 million civil penalty in connection with his business, Integrity Advance.
The decision by Judge Parlen McKenna comes after the Consumer Financial Protection Bureau, an independent federal watchdog agency, said Carnes and Integrity Advance extended payday loans that deceived consumers about the cost of their loans and continued to debit borrowers’ accounts after they canceled authorization.
Carnes’ notice of appeal called the outcome of the case “arbitrary, capricious, an abuse of discretion, not in accordance with law, and/or unsupported by reliable, probative, and substantial evidence.” Carnes’ attorney declined to comment on the appeal.
Read more: Kansas City Star