Consumer Finance Insights
June 5, 2020

D.C. AG Files Suit Against Online Lender

On June 5, 2020, the Attorney General for the District of Columbia (DC AG) announced that it had filed a complaint in the Superior Court of the District of Columbia against an online lender for allegedly making illegal loans to over 2,500 DC consumers in violation of the Consumer Protection Procedures Act (CCPA), D.C. Code §§ 28-3901, et seq. According to the DC AG, the online lender deceptively marketed high-cost loans carrying interest rates that exceeded the District’s cap by up to 42 times–which are capped at 24 percent.

The DC AG alleges that, although the online lender is not licensed in the District, it offered short-term loan products with interest rates between 99 and 251 percent. Further, the DC AG alleges that the online lender marketed its products as less expensive than payday loans, notwithstanding the fact that payday loans are illegal in the District. The DC AG also alleges that the lender failed to communicate the actual costs of the loans to consumers, and that their products’ interest rates exceeded DC limits.​​

The DC AG is seeking a permanent injunction, civil penalties, restitution in the amount of interest paid, and the District’s costs and fees.

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