Illinois Takes Action Against Legalized Loan Shark Front Group Money Mutual

Fraud, Deception Mark Business Model of Group Promoted by Montel Williams

Illinois Attorney General Kwame Raoul joined Illinois Department of Financial and Professional Regulation Secretary Mario Treto Jr. today in announcing a settlement with three payday loan lead generation companies, including Money Mutual. The settlement is designed to protect Illinois consumers from the deceptive practices used by Money Mutual and others (Partner Weekly, Selling Source) to steer people to exorbitantly priced payday loans.

“Payday loan 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. “I am committed to protecting Illinois residents from payday lenders that operate illegally and trap people into expensive loans with unaffordable interest rates.”

Representatives of the State of Illinois had alleged that the companies violated Illinois’ lending laws by generating payday loan leads without being licensed, and arranging high-cost payday loans for out-of-state payday lenders, many of which were also unlicensed. Raoul and IDFPR alleged the companies violated Illinois’ Consumer Fraud and Deceptive Business Practices Act by falsely representing their loan network as being trustworthy; however, loan terms and conditions did not comply with Illinois law.