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 some cases, consumers allegedly paid five times the amount they borrowed due to unlawful loan fees and interest. The parties reached a settlement in the case and the Court entered a consent judgment requiring restitution and disgorgement payments. Under the terms of the consent order, the lenders are permanently prohibited from servicing or collecting on consumer loans in Colorado.
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