Fig agrees with payday loan company

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CHICAGO, Illinois (KFVS) – Illinois Attorney General Kwame Raoul announced that the state has reached a settlement with three online payday lending companies.

The settlement with MoneyMutual LLC, PartnerWeekly LLC, and Selling Source LLC removes allegations by the Attorney General and the Illinois Department of Financial and Professional Regulation (IDFPR) that the companies violated state credit laws.

The settlement filed in the Cook County Circuit Court requires companies to immediately stop offering loans to unlicensed Illinois borrowers.

The three companies were accused of generating unlicensed payday loan leads and arranging expensive payday loans for extra-state payday lenders, some of which were also unlicensed.

“Payday lenders disproportionately target low-income and colored communities, making it extremely difficult, if not impossible, for people to escape the cycle of poverty,” said Raoul. “I am committed to protecting Illinois residents from payday lenders who operate illegally and lure people into expensive loans with unaffordable interest rates.”

The settlement prohibits all three companies from continuing the following practices:

  • Arranging or offering small dollar credit, online or otherwise, without being licensed by the IDFPR.
  • Advertise or offer small loan agreements or lead generation services in the state of Illinois unless licensed by IDFPR.
  • Providing services related to the brokering or offering of small loans to Illinois consumers without being licensed by the IDFPR.

The Attorney General’s office filed lawsuits against the companies in 2014 after the companies refused to comply with a cease and desist order issued by the IDFPR that required licensing.

According to the lawsuit, MoneyMutual attracted borrowers in part through advertisements featuring former television presenter and celebrity spokesman Montel Williams.

The companies reportedly managed to collect personal financial information from tens of thousands of Illinois consumers who searched for credit on the MoneyMutual website. The companies were charged with selling the personal data to payday lenders who used it to make loans to potential borrowers.

Senior Assistant Attorney General Tom James handled the lawsuit for Raoul’s Consumer Fraud Bureau.

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