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The CFPB on Tuesday took action against Top Notch Funding and two individuals associated with the company for lying about loan offerings to people who were awaiting payments from legal settlements and victim-compensation funds.

Those affected by Top Notch's scam include former National Football League (NFL) players suffering from neurological disorders, 9/11 first responders and victims of the 2010 Deepwater Horizon oil spill. The CFPB is demanding a total of $70,000, which is based on the defendants' financial capacity and inability to pay more, to be paid to its Civil Penalty Fund.

The CFPB argued that Top Notch, its owner Rory Donadio and his associate John "Gene" Cavalli inaccurately marketed the business and loans to consumers. Top Notch claimed it was a lender, but in reality was a broker that received commission from completed deals. It also promised 1 and 2 percent annual rates for loans that actually had rates greater than 20 percent. The company reportedly also lied about its resources and how quickly consumers would receive funds.

If the CFPB's consent order is approved by the court, Donadio, Cavalli and the company would be banned from offering these types of loans in the future, in addition to the $70,000 fine.