A settlement has been reached with online payday lenders Money Mutual, Partner Weekly and Selling Source, according to a press release from the Illinois attorney general’s office.
The Illinois Department of Financial and Professional Regulation was also involved in the case.
The lawsuit claimed that Money Mutual lured borrowers to its website through famous spokesperson Montel Williams.
The companies reportedly generated leads with personal financial information from tens of thousands of Illinois consumers, according to the lawsuit, all of whom were looking for loans. This personal information was then sold to payday lenders who in turn used it to offer loans to potential borrowers, according to the lawsuit.
“The department is proud to protect Illinois consumers from targeting unlicensed lenders and their hard-earned income,” IDFPR Acting Secretary Mario Treto, Jr. said in a statement. “We take this responsibility seriously and will continue to fulfill our mission as opportunities arise in the future.”
By settling the case, Illinois Attorney General Kwame Raoul resolves allegations that companies violated Illinois loan laws by generating unlicensed payday lending leads and organizing unauthorized payday loans. High cost payday loans for out of state payday lenders.
The settlement filed with the Cook County Circuit Court requires companies to immediately stop offering loans to borrowers in Illinois without being licensed.
“Payday lenders disproportionately target low-income communities and communities of color, and they make it extremely difficult, if not impossible, for people to escape the cycle of poverty,” Raoul said in a press release. . “I am committed to protecting Illinois residents from payday lenders who operate illegally and trap people in expensive loans with unaffordable interest rates.”
