Illinois settles case with Money Mutual and other payday lenders

A settlement has been reached with online payday lenders Money Mutual, Partner Weekly and Selling Source, according to a press release from the Illinois attorney general’s office.

The Illinois Department of Financial and Professional Regulation was also involved in the case.

The lawsuit claimed Money Mutual lured borrowers to its website through well-known spokesperson Montel Williams.

The companies allegedly generated leads with personal financial information of tens of thousands of Illinois consumers, according to the lawsuit, all of whom were seeking loans. This personal information was then sold to payday lenders who, in turn, used it to offer loans to potential borrowers, according to the lawsuit.

“The department is proud to protect Illinois consumers from unlicensed lenders who target them and their hard-earned income,” Mario Treto, Jr., acting IDFPR secretary, said in a statement. “We take this responsibility seriously and will continue to fulfill our mission as opportunities arise in the future.”

In settling the case, Illinois Attorney General Kwame Raoul resolves allegations that the companies violated Illinois lending laws by generating unlicensed payday loan leads and arranging high cost payday loans for out of state payday lenders.

The settlement filed with Cook County Circuit Court requires companies to immediately stop offering loans to unlicensed Illinois borrowers.

“Payday 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 in a press release. . “I am committed to protecting Illinois residents from payday lenders who operate illegally and trick people into expensive loans with unaffordable interest rates.”