Loans at 99% to 251% Interest?!?
Rent-a-bank lender Elevate pays $4 million settlement for violating DC Law
Advocates at the National Consumer Law Center applaud District of Columbia Attorney General Karl Racine’s announcement today that DC has reached a settlement with predatory rent-a-bank lender Elevate that requires it to abide by the District’s interest rate limits and to provide over $4 million in relief to wronged consumers.
“Companies that lend monies to District residents cannot charge more than 24% interest,” said AG Racine. “This settlement will put money back into the pockets of District consumers who were illegally overcharged. District consumers should be skeptical of any lender, including so-called fin-tech companies, that promise easy money without any financial consequence. The truth is often buried in the fine print. Interest rates like those involved in this settlement often exceed 100 percent and have a devastating impact on individuals who are in need of an honest and lawful loan. This resolution is part of my office’s continued focus on protecting DC residents from these predatory lenders.”
Noting that online operators such as Elevate often use rent-a-bank schemes to seek to avoid state rate caps, consumer advocates at the National Consumer Law Center (NCLC) encouraged other jurisdictions to follow…
