Lendmark Financial: A History of Predatory Lending Practices and the $50 Million Settlement
Lendmark Financial, a subprime lender targeting borrowers with poor credit, faced numerous lawsuits, including a 2020 class action accusing them of predatory lending practices. After denying the allegations, Lendmark agreed to a $50 million settlement in 2022, highlighting the importance of borrower awareness and protection against hidden fees and deceptive tactics.
| Complete Date | Case | Citation | Court | Short Summary |
|---|---|---|---|---|
| December 2020 | Crumpton et al. v. Lendmark Financial Services LLC | N/A | U.S. District Court for the Southern District of Illinois | Class action lawsuit alleging violations of the Telephone Consumer Protection Act (TCPA) due to excessive automated calls to cell phones without prior consent. |
| March 2021 | Shulman v. Lendmark Financial | N/A | U.S. District Court for the District of South Carolina | Individual lawsuit alleging improper credit reporting under the Fair Credit Reporting Act (FCRA). |
| March 2023 | Williams v. Lendmark Financial Services, Inc. | N/A | U.S. District Court for the District of Maryland | Individual lawsuit alleging violations of Maryland’s Consumer Loan Expansion Corporation (CLEC) law regarding late fees and application of payments. |
| June 2020 | Proposed Class Action | N/A | N/A | Allegations of “credit insurance packing,” adding unnecessary and costly insurance products to loans without proper disclosure or consent. Investigation by Lieff Cabraser law firm ongoing. |
| 2022 | Crumpton et al. v. Lendmark Financial Services LLC Settlement | N/A | N/A | Settlement reached for $50 million to compensate borrowers allegedly harmed by Lendmark’s predatory lending practices |
Details and Latest Developments:
- Beyond the TCPA class action settlement, individual legal challenges continue against Lendmark, raising concerns about various practices.
- Lieff Cabraser’s investigation into “credit insurance packing” adds another layer of scrutiny to Lendmark’s lending practices.
- This history underscores the importance of borrower awareness and seeking legal counsel if you suspect predatory lending tactics.
Important Note: This information is not a substitute for legal advice. If you believe you have been a victim of predatory lending, consult with a consumer protection attorney.
