Madigan reaches settlement with payday lender for illegal fees

SHARE Madigan reaches settlement with payday lender for illegal fees
gavel7.jpg

Sun-Times file photo

Attorney General Lisa Madigan announced a settlement Thursday with a northwest suburban Elgin payday lending company that illegally sold loans with hidden interest rates and fees.

The settlement requires All Credit Lenders to pay $3.5 million and “immediately stop offering the revolving line of credit that carried hidden interest rates disguised as ‘required account protection fees’ ranging from 350 percent to more than 500 percent,” according to a statement from Madigan’s office.

All Credit Lenders must stop collecting on loans carrying these fees and waive outstanding balances for thousands of customers, prosecutors said. The company has already paid $200,000 in restitution to borrowers who were unemployed or receiving social security when they received their loan and borrowers who had previously filed complaints with Madigan’s office.

Madigan also reached settlements with five additional Illinois lending companies that offered similar loans, prosecutors said.

“These are egregious violations of the payday reform law we fought to put in place to protect consumers from outrageously expensive loans,” Madigan said in the statement. “All Credit Lenders and these other operators concoct illegal fees and costs, then fail to disclose them, and as a result, consumers end up owing enormous amounts outlawed by our reforms.”


The Latest
In corresponding moves, the Sox sent outfielder Adam Haseley and pitcher Jimmy Lambert to Triple-A Charlotte.
The federal government’s Interagency Working Group on Youth Programs recently compiled a list of resources for children, families, educators and community members dealing with grief after mass shootings.
The suburb where a mass shooter opened fire during a Fourth of July parade Monday is roughly 25 miles outside Chicago.
Suzuki returned Monday after over five weeks on the IL with a sprained left ring finger.
On July 5, 1947, the unassuming 22-year-old joined the Cleveland Indians and played at Comiskey Park, the first Black player in the American League. Every July 5, AL players should wear his No. 14.