Georgia AG reaches $40 million settlement with online payday lender

On February 9, the Georgia Attorney General’s Office issued a press release announcing that it reached a settlement with online payday lenders Western Sky Financial, CashCall and affiliates (Defendants). The settlement resolved the Georgia AG’s multi-year legal battle with the California-based online lender for charging illegal interest and fees under an alleged “rent-a-tribe” scheme.   [...]

By | 2017-02-13T12:06:52+00:00 February 13th, 2017|Enforcement Action, Payday Loans, Uncategorized|0 Comments

CashCall to pay $15 million settlement for illegal Virginia online lending scheme

On January 31, the Virginia Attorney General issued a press release announcing a settlement with CashCall, Inc., a small-dollar online lender that allegedly engaged in illegal lending practices. According to the Virginia Attorney General’s complaint, CashCall engaged in a “rent-a-tribe” scheme, using a South Dakota company with a purported Native American tribe affiliation called Western Sky [...]

By | 2017-02-06T07:19:28+00:00 February 6th, 2017|CFPB Enforcement, Enforcement Action, Payday Loans, Uncategorized|0 Comments

What Trump’s regulatory moratorium means for CFPB payday rule

On January 20, the Trump Administration issued a memo directing the recipients to freeze the review and final publication of pending regulations. The memo states, “send no regulation to the Office of the Federal Register (the “OFR”) until a department or agency head appointed by the President after noon on January 20, 2017, reviews and [...]

Ninth Circuit orders tribal payday lenders to comply with CFPB investigations

On January 20, the Ninth Circuit affirmed a district court decision in CFPB v. Great Plains Lending that compelled three tribal lending entities to comply with civil investigative demands (CID) issued by the CFPB. The tribal entities are for-profit small-dollar online lending companies created by three separate tribes (Tribes). The CFPB launched an investigation into [...]

By | 2017-01-23T12:08:48+00:00 January 23rd, 2017|Payday Loans, Uncategorized|0 Comments

Online payday lender settles with Florida AG for $28 million

On January 12, the Florida Attorney General’s Office announced it had “coordinated settlements with the operators of an online lending scheme.” According to the Florida AG’s press release, the companies involved in the alleged scheme include Western Sky Financial, LLC, CashCall, Inc., WS Funding, LLC, Delbert Services Corporation and John Paul Reddam, the President, CEO [...]

By | 2017-01-17T00:24:51+00:00 January 17th, 2017|Legal Developments, Payday Loans, Uncategorized|0 Comments

FTC files suit against payday loan scammers

On January 9, the Federal Trade Commission (FTC) issued a press release announcing that it filed a lawsuit against a Kansas man and affiliated companies for allegedly selling portfolios of fake payday loan debts to debt collectors. Debt buyers and debt collection agencies subsequently used the information to pursue payment from consumers for those fake [...]

By | 2017-01-12T13:36:43+00:00 January 12th, 2017|Enforcement Action, FTC Enforcement, Payday Loans, Uncategorized|0 Comments

CA Supreme Ct Ruling: Tribal sovereign immunity does not bar payday enforcement action

Recently, the California Supreme Court ruled that a pair of tribally-affiliated entities operating online payday lending businesses failed to demonstrate that they were entitled to tribal sovereign immunity. In The People of the State of California v. Miami Nation Enterprises, et al., the California Supreme Court reversed an appellate court decision which affirmed the trial [...]

By | 2017-01-11T14:19:02+00:00 January 11th, 2017|Legal Developments, Payday Loans, Uncategorized|0 Comments

CFPB enters into consent order for $125K with Arizona title lender

In September, the CFPB filed individual administrative lawsuits against five Arizona auto title lenders for deceptive online advertising practices. On December 20, the CFPB entered into a consent order with one of those lenders. Presto Auto Loans, Inc., an auto title lender operating in the State of Arizona, settled the charges by agreeing to pay [...]

CFPB enters into consent order with payday lender Moneytree

Last week, the CFPB announced that it entered into a consent order with Moneytree, Inc. to settle allegations that the company engaged in deceptive online advertising and collection practices. The Bureau also alleged that Moneytree made unauthorized online electronic fund transfers (EFTs) from consumer bank accounts. […]

By | 2016-12-20T00:00:09+00:00 December 20th, 2016|CFPB Enforcement, Enforcement Action, Payday Loans, Uncategorized|0 Comments

$2.3 million returned to Massachusetts consumers as result of settlement with unlicensed payday lender

On November 22, 2016, the Massachusetts Attorney General and the Massachusetts Division of Banks (DOB) issued a press release announcing that nearly 1,700 consumers had received refunds totaling approximately $2.3 million as a result of a settlement with an unlicensed online payday lender. […]

By | 2016-11-29T20:23:29+00:00 November 29th, 2016|Enforcement Action, Payday Loans, Uncategorized|0 Comments
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