Colorado: WebBank, Cross River Bank to pay $1,550,000 for exceeding interest on consumer loansChristian Fernsby ▼ | August 19, 2020
Colorado Attorney General Phil Weiser announced that his office has reached a settlement in two precedent-setting lawsuits involving Colorado’s right to enforce its interest rate limits on consumer loans to protect residents from predatory lending practices.
Colorado Cross River Bank
Under the settlement, WebBank, Cross River Bank, and all of their non-bank partners, including Avant and Marlette, have agreed to provide Colorado consumers with certain protections to ensure that they are making true banks loans. Additionally, they committed that they will not lend to Colorado consumers at rates above 36% and will provide consumers with other protections required by Colorado law. In addition, non-bank partners will maintain a Colorado lending license.
The companies will pay $1,050,000 to the State of Colorado for consumer protection efforts consistent with the settlement agreement. Furthermore, the companies will make a $500,000 contribution to the MoneyWi$er program, a partnership between the Attorney General’s Office and the Colorado Department of Education that supports K-12 financial education in Colorado.
Weiser said that securing funding for MoneyWi$er is also a significant component of this settlement because it will help provide important life skills to young people as they begin planning their financial future. ■