MADIGAN CRACKS DOWN ON UNLICENSED, PREDATORY PAYDAY LENDERS

MADIGAN CRACKS DOWN ON UNLICENSED, PREDATORY PAYDAY LENDERS

Attorney General, Department of Financial & expert Regulation act Against on the web Payday Lenders & Lead Generator Promoted by Talk Show Host Montel Williams

Chicago — Attorney General Lisa Madigan today filed five lawsuits in a sweep cracking down on unlicensed, online payday lenders and that loan lead generator promoted by talk show host Montel Williams for illegally providing costly, predatory loans that trap Illinois borrowers in exorbitant, cyclical financial obligation lots.

Madigan filed legal actions this week in Cook County Circuit Court with respect to the Illinois Department of Financial and Professional Regulation (IDFPR) against four out-of-state payday lenders being running solely online, offering payday advances racked with charges which can be twice the quantity permitted under state legislation. The legal actions allege BD PDL Services LLC, Mountain Top Services we LLC, Red Leaf Ventures LLC and VIP PDL solutions LLC charged Illinois borrowers $30 for virtually any $100 loaned and permitted borrowers to get multiple loans at when.

The pay day loan Reform Act limits the fees a consumer can be charged by a payday lender to a maximum of $15.50 per $100 loaned. Payday loan providers cannot issue that loan to a customer in the event that loan would end up in their being with debt to at least one or maybe more lender that is payday significantly more than 45 consecutive times, and additionally they cannot issue a loan to a customer whom currently holds balances on two loans.More