A U.S. Army staff sergeant filed a class action complaint in Cook County Circuit Court last week, alleging the fintech company Klover engaged in predatory lending practices in violation of the Military Lending Act and Truth in Lending Act. The plaintiff claims Klover charged average percentage rates exceeding 300% on its cash advance loans.
Takeaway: Class action complaints against online cash advance companies are on the rise in recent months, with at least seven filed in March and April, claiming the lending companies preyed on active-duty military service members and their dependents. All of the class-action claims allege that fintech companies like Klover breached the Military Lending Act, which protects active-duty service members from predatory lending practices, and the Truth in Lending Act by levying inordinately steep finance charges and failing to disclose the interest rates associated with users’ loan agreements.
Court: Illinois, Circuit Court of Cook County