Illinois is clearing case with Money Mutual, fellow payday lenders

0

An agreement has been reached with online payday lenders Money Mutual, Partner Weekly and Selling Source, according to a press release from the Illinois Attorney General.

The Illinois Department of Financial and Professional Regulation was also involved in the case.

The lawsuit alleged that Money Mutual attracted borrowers to its website through prominent spokesman Montel Williams.

According to the lawsuit, companies allegedly generated leads with personal financial information from tens of thousands of Illinois consumers, all of whom were looking for credit. That personal information was then sold to payday lenders who, in turn, used it to offer loans to potential borrowers, the lawsuit said.


“The department takes pride in protecting Illinois consumers from unlicensed lenders and their hard-earned income,” said Mario Treto, Jr., acting secretary of the IDFPR in a statement. “We take this responsibility seriously and will continue to live up to our mission in the future.”

By settling the case, Illinois Attorney General Kwame Raoul resolves allegations that the companies violated Illinois lending laws by generating unlicensed payday loans and arranging expensive payday loans for foreign payday lenders.

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

“Payday lenders disproportionately target low-income and colored communities, making 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 lure people into expensive loans with prohibitive interest rates.”

Share.

Leave A Reply