|
State Attorneys General Sue Lender for Alleged “Bait-and-Switch” Scheme On March 16, 2026, a coalition of State Attorneys General (AGs) filed a lawsuit in the Southern District of New York against a New York-based lender and its affiliated entities for an alleged “bait-and-switch” scheme through which the AGs assert the lender charged customers “hundreds of millions of dollars in hidden fees and interest.” The coalition is comprised of the State Attorneys General of New York, Pennsylvania, Colorado, Maryland, Nevada, New Hampshire, New Jersey, North Dakota, Oklahoma, South Dakota, Virgina, Washington, and Wisconsin. In their complaint, the State AGs assert that the loan provider violated the Consumer Financial Protection Act and multiple state consumer protection laws for “surreptitiously” charging consumers for add-on products through business practices such as rushing consumers through loan closing processes, utilizing marketing materials that do not disclose full terms of loans, and failing to make consumers aware of refinancing implications. Among other relief, the State Attorneys General are seeking an injunction to prevent the alleged violations of state and federal laws, conduct changes requiring the lender to withdraw proceedings or negative credit reporting related to the challenged loans, restitution, disgorgement, civil penalties, enforcement costs, and invalidation, recission, or reformation of certain loan contracts. |
The post State Attorneys General Sue Lender for Alleged “Bait-and-Switch” Scheme appeared first on Consumer Finance Insights (CFI).