Green Arrow Loans Lawsuit Targets Payday Lender's High-Interest Practices

Green Arrow Loans, a payday lender, is facing a lawsuit for its high-interest practices. The lawsuit claims the company is engaging in predatory lending by charging exorbitant interest rates to vulnerable borrowers.

The lawsuit alleges that Green Arrow Loans is taking advantage of people who are struggling financially, charging interest rates as high as 700%. This is a staggering amount, and it's no wonder that borrowers are feeling overwhelmed.

The company's business model relies on repeat borrowers, with many customers taking out multiple loans in a short period. This creates a cycle of debt that's difficult to escape, and it's exactly this kind of behavior that the lawsuit is trying to put a stop to.

Consider reading: Lawsuit Taking

The Hall et al. v. Green Arrow Solutions et al lawsuit was filed on May 30, 2024, in the United States District Court for the Northern District of Illinois.

The lawsuit alleges that Green Arrow Solutions, a company operating under the name Green Arrow Loans, made high-interest loans to Illinois residents with annual percentage rates exceeding 700%.

Benjamin Steffen, the plaintiff, received a loan from Green Arrow Solutions on February 13, 2023, which carried an interest rate of 852.42%.

This rate is more than twenty times higher than what is permissible under Illinois law.

The plaintiff argues that Green Arrow Solutions' operations, including loan application reviews and payment processing, are conducted from locations outside tribal lands by non-tribal members.

The company falsely claims tribal ownership to evade state regulations, similar to other internet lenders.

Steffen is seeking declaratory judgment to void these loans and an injunction against their collection.

He also demands restitution for amounts already collected from borrowers and statutory damages for violations of state interest laws.