Tremont Financial settled a class action law suit for $60k. The state of Wisconsin alleges that the company’s loan contracts violated certain provisions of the Wisconsin Consumer Act. Each borrower that paid them will get $329.81 and they will forgive all the debt for their other outstanding loans.
Now, I’m pretty sure Tremont is an internet lender b/c I found their site here. Maybe they were doing loans in Wisconsin without a license, but originating them in South Dakota.
I would love to know if they get their original principal back? If you know anything, please leave a comment.
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One response to “Internet Lender hit with $60k class action suit”
Wisconsin chooses to “flex it’s muscles” and attack a payday loan Internet company.
There is still a huge question as to whether an e-business like payday loans, car title loans, rapid tax refunds, etc. can/shoild be regulated by states. Many would argue that the state’s action improperly burdens interstate commerce.
What’s needed is a payday loan company with very deep pockets willing to take on a state attempting to impede their Internet lending.
Personally, I think only the feds have the ability to regulate e-businesses.
Internet regulation is still much like the wild, wild west. It’s going to take years to sort this out.
Meanwhile, the small payday loan Internet lenders will continue to succumb to the whims of the various states that choose to attack them.
Jer@PaydayLoanIndustry.com