The Attorney General of Colorado announced that the state has reached a settlement in two bank partnership lawsuits (Fulford v. Avant of Colorado, LLC and Fulford v. Marlette Funding, LLC). At the core of the lawsuit was the alleged partnership between several nonbanks with out-of-state banks. Under federal law, national banks and state-chartered banks can lend in Colorado at interest rates that exceed Colorado’s limits.
The Colorado AG alleged that two nonbanks, Avant and Marlette, illegally partnered with or “rented” two out-of-state banks, WebBank and Cross River Bank, in order to lend at rates exceeding the state’s usury rate cap.
Under the settlement the two banks and their nonbank partners agreed to not lend to Colorado consumers at rates exceeding 36% and will provide consumers with additional protections. The companies settled with Colorado for $1,050,000 and will also contribute $500,000 to the state’s Money Wi$ser program, which supports financial education in K-12 schools.
These cases are significant in the ongoing legal debate over the “true lender” in the online lending industry.
The Attorney General of Colorado announced that the state has reached a settlement in two bank partnership lawsuits (Fulford v. Avant of Colorado, LLC and Fulford v. Marlette Funding, LLC). At the core of the lawsuit was the alleged partnership… Read the rest
The American Financial Services Association is the premier consumer credit trade association in the country offering its members support and services that help them to continue to offer their consumers reliable, high-quality credit access.… Read the rest
AFSA is building a stellar virtual experience for attendees and Business Partners at the 2020 Virtual Annual Meeting & Independents Conference & Expo, running from Oct. 6-8, 11a.m.-2 p.m. each day. The association is pleased to … Read the rest
AFSA was saddened to learn of the death of Charlie Walters on Sunday, August 16. For those of us in the AFSA family, Charlie was a leader of our association and our industry, and a larger than life figure whether in a board room or at an AFSA conference.… Read the rest
The American Financial Services Association along with several AFSA members is seeking a veto or a chapter amendment to legislation recently passed by both chambers in New York. AFSA communicated with both the Assembly and the Senate in advance… Read the rest
The Federal Reserve Board of Governors on August 12 released an extensive study entitled The Cost Structure of Consumer Finance Companies and Its Implications for Interest Rates: Evidence from the Federal Reserve Board’s 2015 … Read the rest
The American Financial Services Association is the premier consumer credit trade association in the country offering its members support and services that help them to continue to offer their consumers reliable, high-quality credit access.… Read the rest
As AFSA builds a stellar virtual experience for attendees and Business Partners at the 2020 Virtual Annual Meeting & Independents Conference & Expo, we are pleased to announce our second keynote speaker, pollster Kristen Soltis… Read the rest
As AFSA builds a stellar virtual experience for attendees and Business Partners at the 2020 Virtual Annual Meeting & Independents Conference & Expo, we are pleased to announce that former Consumer Financial Protection Bureau… Read the rest
The 9th Circuit Court of Appeals recently issued a favorable ruling in a bankruptcy case, Melissa C. Mather Bobka v. Toyota Motor Credit Corp., No. 18-55688. AFSA submitted an amicus brief in the case, arguing that if the case was decided … Read the rest
