On April 27, 2017, the Consumer Financial Protection Bureau (CFPB) announced the filing of a suit against four online lenders alleging that the lenders illegally collected debts on invalid loans. The complaint alleged violations of the Consumer Financial Protection Act (CFPA), 12 U.S.C. §§ 5531(a), 5536(a), and 5564(a), and the Truth in Lending Act (TILA),…
On September 27, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with an online lender, after a joint investigation with the California Department of Business Oversight (DBO), over allegations that the lender deceptively marketed its loan products and hid the true cost of credit…
On June 8, 2016, the Colorado Attorney General announced that several national lenders were ordered to pay approximately $8 million in restitution to Colorado consumers over alleged usurious loans, which violated Colorado’s Consumer Protection Act. The lenders allegedly originated loans with interest rates that reached as high as 355%. In…
On May 5, 2016, Nebraska Attorney General (“AG”) Doug Peterson and the Department of Banking and Finance announced a settlement with unlicensed online lenders that allegedly engaged in unfair and deceptive lending practices through a tribal lending scheme. The Nebraska AG brought an action on May 4, 2016 against several online lending…
On May 2, 2016, the North Carolina Attorney General (“AG”) announced that a state court judge temporarily banned online auto lenders from engaging in allegedly deceptive lending practices, including charging unlawful fees. The North Carolina AG filed suit against the unlicensed lenders for allegedly charging excessive interest rates and engaging…
On December 11, the California Department of Business Oversight (DBO) announced that it had launched an inquiry into the online lending industry, known as “marketplace lending.” The DBO requested a wide array information from fourteen marketplace lenders, including a five-year trend data about their loan and investor funding programs, and…