River Valley Loans Lawsuit: Class Action Lawsuit Uncovers Lending Practices

River Valley Loans, a payday lender, has been at the center of a class action lawsuit that has shed light on its lending practices. The lawsuit alleges that River Valley Loans charged excessive interest rates and fees, trapping borrowers in a cycle of debt.

Borrowers were allegedly charged interest rates as high as 700% APR, far exceeding the state's usury laws. This practice is not only predatory but also illegal in many states.

The lawsuit also claims that River Valley Loans used aggressive collection tactics, including threats and harassment, to coerce borrowers into paying off their loans.

The River Valley Loans lawsuit has been making headlines, and it's essential to understand the details.

The lawsuit was filed against River Valley Loans, a payday lender, by the Consumer Financial Protection Bureau (CFPB) in 2017.

River Valley Loans allegedly engaged in unfair and deceptive practices, including failing to provide timely and accurate disclosures to consumers.

The company was accused of making false promises to consumers about the cost and terms of their loans.

River Valley Loans allegedly charged consumers exorbitant fees, often exceeding 700% APR, without their knowledge or consent.

The CFPB's lawsuit sought to stop River Valley Loans from continuing these practices and to provide relief to affected consumers.

River Valley Loans has a history of targeting vulnerable consumers, including those with poor credit or limited financial means.

River Valley Loans was a tribal lender that offered loans to consumers across the United States. The loan agreements involved exorbitant interest rates and unfair terms that were later deemed illegal.

The class action lawsuit against River Valley Loans was a long and challenging process, with the defense attempting to dismiss the claims multiple times. The plaintiffs, however, remained determined to seek justice.

The case eventually made its way to the Fourth Circuit Court of Appeals, where the plaintiffs continued to push forward. The parties ultimately agreed to mediation, leading to a settlement that would bring relief to those affected.

Eligible claimants who had repaid their loans in full and made payments exceeding 2.5 times the original principal amount were eligible to request compensation from the settlement fund.

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The lending practices of LDF Holdings and its subsidiaries have been criticized for exploiting the poor.

Attorneys representing borrowers argue that these practices evade state and federal consumer protections, and shield non-tribal partners from liability.

Non-tribal payday lenders use Native American tribes to originate loans, claiming they are subject to tribal law and thus tribal sovereign immunity.

Court documents show LDF Holdings issued and collected loans nationwide under various businesses, including Sky Trail Cash, Nine Torches, and Lendgreen.

Payday lenders are trying to hide behind Native American tribes to avoid being held accountable for predatory lending practices.

A small percentage of revenues generated from these loans may make its way to the tribe, but a large portion of the profits go to non-tribal partners.

The Fitzgeralds and other plaintiffs received loans with interest rates as high as 750 percent, violating state laws on lending.

In Virginia, for example, interest rates beyond 12 percent are only allowed with a license, which these lenders did not have.

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Tribal lenders are a type of non-bank lender that has been at the center of the River Valley Loans lawsuit. They operate online and often claim to be based on Native American reservations, which allows them to avoid state and federal regulations.

Tribal lenders often partner with other companies to facilitate loans, making it difficult to determine who is ultimately responsible for the loan. This can lead to confusion and frustration for borrowers.

The lawsuit against River Valley Loans alleges that the company engaged in deceptive and unfair lending practices, including charging excessive interest rates and fees. River Valley Loans is accused of partnering with a Native American tribe to lend money to consumers in states where payday lending is prohibited.

Borrowers who took out loans from River Valley Loans reported being charged interest rates of up to 700% and being forced to pay back more than 10 times the original loan amount.