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.
Blog Enforcement Watch June 10, 2016