Illinois AG and IDFPR agree with three payday lenders

On November 5, the Illinois Attorney General and the Illinois Department of Financial and Professional Regulation (IDFPR) announced a settlement resolving allegations that three companies violated Illinois payday loan laws. Illinois by generating unlicensed payday loans and arranging high cost payday loans. unlicensed state payday lenders. The AG and IDFPR further alleged that the companies had falsely presented their lending network as “trustworthy,” despite the terms of the loan not complying with Illinois law, which violated the Illinois Consumer Fraud and Deceptive Marketing Practices Act. The AG sued the companies in 2014 after the companies refused to comply with a cease and desist order issued by the IDFPR, which required them to obtain a license. According to the announcement, under the terms of the settlement, companies are prohibited from: (i) arranging or offering small-value loans, online or otherwise, without being licensed by the IDFPR; (ii) advertising or offering small consumer loans or lead generation services in Illinois, unless authorized by the IDFPR; and (iii) provide services associated with arranging or providing small loans to Illinois consumers without being licensed by the IDFPR.