On May 8, 2015, the Colorado Attorney General announced that it filed suit against a Colorado corporation for violations of Colorado lending and consumer protection laws. The company allegedly sought members of the military and their families as customers. The company would then sell goods on credit, offer consumer loans, and then collect on delinquent loans. All active members of the military were promised “instant credit approval.”
In 2012, an inspection into the company showed it charged unlawful fees under Colorado law, charged excessively high interest rates, ignored guidelines on collecting debt, and improperly sued customers in Virginia courts, rather than in Colorado. The complaint filed alleges that the violations continue unabated.
The company also failed to obtain the necessary license to be a lender under Colorado law. Under the complaint, the Attorney General wants all loan finance charges and excess fees to be refunded. The Attorney General is also seeking fines and penalties for each violation of Colorado’s lending and consumer protection law.