(The Center Square) – Mariner Finance is being sued by 11 attorneys general, including North Carolina's Josh Stein, amid accusations of illegal business practices.
The lawsuit was first filed in 2022 and amended earlier this week in the U.S. District Court for the Eastern District of Pennsylvania. Earlier this year, Mariner asked for all claims to be dismissed.
A term often used in the discussion is predatory lending. Most often involve aggressive tactics and unfair loan terms such as high interest rates and fees. Not everything is revealed at the time the borrower signs.
Prosecutors charged Mariner, a Baltimore-based company with 55 locations in seven states, with charging customers with “hidden additional products that customers were unaware of or did not consent to purchase.” is stated in the announcement. The complaint states: Mariners employees did not mention or misrepresent the add-on when speaking with consumers.
Mr. Marriner is accused of illegal sales tactics to new borrowers, including same-day check lending. Prosecutors say the company uses unsolicited “live check” mailings to attract new customers.
In 2019, Mariner charged consumers $121.7 million nationwide in premiums and fees for add-on products.
“We will not tolerate predatory lenders who charge hidden fees to take advantage of North Carolinians,” Stein said.
Mariner has 39 locations in North Carolina. It is owned by a Wall Street private equity fund managed by Warburg Pincus.
In the prosecutor's request for relief, Marriner is asked to stop charging consumers for additional products and to cease other harmful practices.
Additionally, Mariner is required to make full restitution to the borrowers. Repay illegally obtained profits. Civil penalties will be imposed. Cancel or amend all contracts or loan agreements with consumers affected by the company's illegal activities.
Michelle Henry of Pennsylvania heads a list of attorneys general that included the District of Columbia, New Jersey, Oregon, Utah and Washington in the initial filing. The amended complaint now includes Illinois, Indiana, New York, North Carolina, Tennessee, and Wisconsin.
For Stein, it is Second time in about 6 weeks He took action against companies he believed were harming North Carolinians. The gubernatorial candidate filed a lawsuit against Auto Money North, which has stores in South Carolina and customers in both states.
In this case, as an example, a loan of $18,186 required repayments of $98,339.75 plus interest and surcharges.
