Spotloan, an online installment lender, has faced numerous lawsuits alleging deceptive lending practices, usury, and violations of state consumer protection laws. These lawsuits have resulted in settlements, fines, and raised concerns about the company’s compliance with regulations.
| Complete Date | Case | Citation | Court | Short Summary |
|---|---|---|---|---|
| Feb 2018 | Johnson v. BlueChip Financial, dba Spotloan | Case No. 18-cv-00706-ODW (N.D. Cal.) | U.S. District Court for the Northern District of California | Class-action lawsuit alleging usurious interest rates and deceptive lending practices. |
| July 2019 | In the Matter of BlueChip Financial d/b/a Spotloan | N/A | Connecticut Department of Banking | State enforcement action finding unfair and deceptive practices, including excessive interest rates and lack of disclosure. |
| Feb 2020 | Turner et al. v. ZestFinance, Inc. et al. | Case No. 3:19-cv-00293-DJN (E.D. Va.) | U.S. District Court for the Eastern District of Virginia | Class-action lawsuit alleging loans exceeding state usury limits or made without a license. Settled with loan forgiveness or cash payments. |
Allegations:
- Deceptive Lending Practices: Borrowers claim they were misled about loan terms, fees, and true costs.
- Usury: Interest rates accused of violating state usury laws, designed to protect borrowers from predatory lending.
- Consumer Protection Violations: Accused of unfair and deceptive practices prohibited by state laws.
Impact:
- Millions paid in settlements and fines.
- Damaged reputation and operational challenges.
- Increased awareness of risks associated with online lending.
Conclusion:
Spotloan lawsuits highlight the importance of consumer protection and transparent lending practices. Borrowers should be cautious and understand loan terms before borrowing from online lenders.
