North Carolina AG settles with out-of-state payday lender for $825,000 | Goodwin
[author: Viona Harris]
On January 27, 2020, North Carolina Attorney General Josh Stein (North Carolina AG) reached an agreement with an out-of-state payday lender for $825,000. The Attorney General obtained a temporary consent restraining order against the lender in May 2019 based on allegations that the lender was not licensed to operate in North Carolina, but provided usurious consumer loans to consumers who exceeded the interest rate permitted by North Carolina law. According to North Carolina AG, the lender contacted North Carolina consumers on the Internet and issued more than 400 loans ranging from $600 to $15,000 with interest rates ranging from 78% to 252%, in violation of the law on North Carolina Consumer Finance, Usury Laws, Debt Collection Law, and Unfair and Deceptive Trade Practices Law.
Under the consent order, the lender agreed to pay $481,403 in restitution to the consumer, $301,665 in loan forgiveness and $30,000 in attorney’s fees. The Lender is also permanently prohibited from soliciting, offering, arranging, making, or collecting payments on consumer loans in the State of North Carolina unless it obtains an appropriate license.