Blog Enforcement Watch November 05, 2021

Illinois Attorney General Reaches Settlement with Payday Loan Lead Generators

On November 5, 2021, the Illinois Attorney General’s Office (Illinois AG) announced a settlement with three online payday lending lead generators to resolve allegations that the companies violated Illinois state lending laws.  The Illinois AG alleged that the lead generators violated state lending laws by generating payday loan leads without a license and by organizing high-cost payday loans for out-of-state lenders, most of which were also unlicensed.  Moreover, the Illinois AG alleged that the lead generators falsely represented their loan network as trustworthy, when, in reality the loan terms and conditions did not comply with state law.

The settlement requires all three companies to immediately stop offering loans to Illinois borrowers until the companies are licensed.  The settlement also prohibits the companies from arranging small dollar loans to Illinois borrowers without being licensed.  ​

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