On November 19, 2024, the District of Columbia’s Attorney General (DC AG) announced that it had filed a complaint in the Superior Court of the District of Columbia against an online lender for alleged violations of the District of Columbia Consumer Protection Procedures Act (CPPA). According to the DC AG’s complaint, the company, which operates both a website and mobile app through which consumers can obtain payday advance loans, made deceptive marketing statements, claiming that its product was not a loan, but a “cash out” which could be obtained “instantly” with “no mandatory fees” and “no interest.” The DC AG alleges that the product is, in fact, a loan and that consumers were required to pay a “Lightning Speed” fee to obtain the funds immediately, as well as other fees. The “Lightning Speed” fees allegedly resulted in effective interest rates of over 300%, well above D.C.’s 24% cap. Further, the DG AG alleges that the company is offering loans without the required D.C. money lending license.
The lawsuit seeks restitution, damages, a civil penalty, and to permanently enjoin the company from allegedly violating the CCPA.