Michigan AG Settles Lawsuit Against Online Tribal Lender

On April 16, the Michigan Attorney General (AG) announc​ed that an online tribal lender agreed to an assurance of voluntary compliance, resolving allegations that the lender violated the Consumer Financial Protection Act (CFPA).  Specifically, the state filed suit seeking an injunction prohibiting the lender from offering or providing usurious loans in the state of Michigan.

Pursuant to the agreement, the lender will cease offering new loans to Michigan residents, and will provide the AG notice if it plans to commence lending in the state again in the future.  The lender may continue servicing existing Michigan loans so long as it only applies money collected to the principal balance of the loan.