On May 20, the Vermont Attorney General announced a settlement with an Arizona processer of internet payday loans, resolving allegations that the company violated the state’s prohibition on unfair and deceptive acts in commerce. This settlement represents the AG’s fourth and largest settlement against a similar entity.
In the settlement agreement, the company admitted that it processed electronic financial transactions on behalf of approximately 43 separate lenders, in connection with high-interest, small-dollar consumer loans made over the internet. None of those lenders were licensed to make loans in Vermont. Between 2012-2014, however, the company processed approximately $1.7 million in transfers from Vermont residents’ bank accounts.
The AG alleged that processing transactions on behalf of unlicensed lenders violated Vermont state law. The company agreed to cease processing electronic transfers from Vermont bank accounts on behalf of unlicensed lenders, and pay $153,282 to almost four thousand consumers. The company also agreed to pay the state a $25,000 penalty.
The post Vermont AG Enters Largest Settlement With Online Payday Loan Processor appeared first on Consumer Finance Insights (CFI).