Consumer Finance Insights
August 16, 2016

Colorado AG Settles Illegal Lending And Debt Collection Claims Against Two Lenders

On August 1, 2016, Colorado Attorney General Cynthia H. Coffman announced a settlement of two lawsuits against lenders for targeting the military and other allegedly illegal lending practices.

According to the Attorney General, the settlement comes after charges filed against the lenders in 2015, alleging that the lenders used illegal and abusive collection methods, including contacting the commanding officers of military members who allegedly owed debts.  The lawsuits also alleged that the lenders charged Colorado consumers excessive interest rates in violation of Colorado law.  The lenders allegedly tried to evade Colorado interest rate protections by entering into a relationship with an out-of-state bank to make loans.

The parties entered a consent judgment in Denver District Court, which requires the lender to pay more than $3.9 million to harmed consumers and provides for injunctive relief to ensure future legal compliance.