Indiana AG Settles with Lenders for $250,000 Over Allegedly Deceptive and Unlicensed Loans

On March 20, the Indiana Attorney General (IN AG) announced ​it had reached a settlement with a group of Indiana companies regarding loans that were allegedly originated through deceptive means or were otherwise unlicensed. The settlement was reached in collaboration with the Indiana Department of Financial Institutions (DFI).

The IN AG alleged that defendant lenders provided personal loans to vehicle purchasers to finance the taxes and down payments associated with their vehicle purchase in violation of the Indiana Uniform Consumer Credit Code and Deceptive Consumer Sales Act.  Violative acts alleged include “contracting for charges in excess of the maximum allowable rate, misrepresenting finance charges and failing to disclose prepaid finance charges.” Further, one such lender did not have the required DFI license to make such loans.

The settlement requires the defendant ​lenders to “forgive consumer loans totaling $223,685, pay consumer restitution in the amount of $33,991, and pay civil penalties and costs to the State of Indiana in the amount of $33,000.”