The Attorney General of Illinois and the Illinois Department of Financial and Professional Regulation have reached a settlement with three online payday lending lead generators that will see them stop operating in the state without having a proper license.
The AG and the IDFPR filed lawsuits against the companies — MoneyMutual LLC, PartnerWeekly LLC, and Selling Source LLC — in 2014, after they refused to comply with a cease-and-desist order that was issued by the regulator. The lawsuit accused the companies of violating the Illinois Consumer Fraud and Deceptive Business Practices Act by generating payment loan leads without being licensed and arranging high-cost payday loans for out-of-state payday lenders, many of which were also not licensed.
“The Department takes pride in protecting Illinois consumers from unlicensed lenders who target them 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 fulfill our mission as opportunities present themselves in the future.”
MoneyMutual, many may remember, used former talk-show host Montel Williams as an endorser. The company generated leads from “tens of thousands” of Illinois customers, according to the AG’s office. They alleged the advertising used by the companies misled Illinois customers into believing that the networks were licensed and complying with the law. But “many of the lenders were not licensed or authorized to lend to Illinois consumers, and imposed exorbitant and unlawful interest rates and finance charges,” the AG and IDFPR alleged.
Under the terms of the settlement, all three companies are prohibited from
- Arranging or offering small-dollar loans, online or otherwise, without being licensed by IDFPR.
- Advertising or offering any small consumer loan arrangements or lead generation services in the state of Illinois, unless they are licensed by IDFPR.
- Providing services related to arranging or offering small dollar loans to Illinois consumers without being licensed by IDFPR.
