Overview

Reviewed by Matthew J. Goldstein. 

Over the past several decades, predatory lending has emerged as one of the most significant consumer financial protection issues facing individuals in the U.S. Unscrupulous operators of high-interest lending businesses try to evade liability for making illegal loans through what they believe to be loopholes in the law. However, consumer protection laws in Illinois and across the country provide consumers with options for fighting against these companies’ abusive practices. 

Have you received a predatory loan from Minto Money, ZocaLoans, First Loan, or another predatory lender? Call Wallace Miller at (331) 425-8022 to discuss your options. In a free and confidential consultation, we’ll work with you to find out what’s going on and determine whether you have a case.

Case Team

Principal Attorney: Matthew J. Goldstein

Supporting Attorneys: Julia Ozello, Jacob Podell

Have You Received an Illegal Loan? Learn More About Predatory Lending

Injury

The shady practices of predatory lenders

Predatory lending involves making short-term loans at astronomically high interest rates, often in the triple digits. Operators of these payday loans take advantage of people who urgently need money. These individuals are often unable to pay off the first loan and are forced to take out additional loans to keep from defaulting, leading to a never-ending cycle of debt. Meanwhile, the payday loan companies and their business partners rake in huge profits.

Many states have passed laws designed to stop these abusive loan. These laws often impose a cap on interest rates and ban lenders from offering loans at higher rates. But predatory lending businesses have done their best to skirt these laws through various means—some dubiously legal, and others plainly illegal.

 

Plaintiff & Defendant

Bringing a predatory lending lawsuit with Wallace Miller

Attorney Matthew J. Goldstein and our dedicated legal team are leading the charge against predatory lending. You may be eligible to join one of our class action lawsuits if you obtained a loan from:

Minto Money 

Minto Money regularly makes loans to consumers at interest rates exceeding 700%. While Minto Money claims to be owned and run by a tribe in Minto, Alaska, the operation is actually run by non-tribal individuals far from any lands the tribe claims to own

Wallace Miller filed a class action lawsuit on behalf of five of its clients who received a predatory and unlawful loan nominally made by Minto Money. The lawsuit, Boddie, et al. v. McGraw, et al., is pending in the U.S. District Court for the Northern District of Illinois. If you’ve received a loan from Minto Money, you may be eligible to join the lawsuit and fight for compensation.

ZocaLoans 

Like Minto Money, ZocaLoans has made tens of thousands of short-term, high-interest loans to Illinois consumers, many at interest rates exceeding 500%. Run out of Florida by a company called 777 Partners, ZocaLoans has tried to avoid state and federal law by claiming to operate under tribal law.

However, 777 Partners has no tribal affiliation, and their usurious loans are illegal under Illinois law. Our team has filed class action lawsuits in the U.S. District Court for the Northern District of Illinois to secure damages for consumers harmed by these loans and to stop the companies from taking advantage of consumers in the future.

Wallace Miller is fighting to help those who have been harmed by the abusive loan terms of payday lenders and hold companies accountable.

 

Landscape

Understanding usury laws in Illinois

Usurious loans are made at an unreasonably high interest rates. In an effort to protect consumers from loans like these, the Illinois General Assembly passed the Illinois Predatory Loan Prevention Act (PLPA) in 2021. The PLPA is designed to stamp out predatory loans and protect borrowers by prohibiting a lender from making a loan to an Illinois resident at an interest rate higher than 36 percent.

Any loan made in violation of the PLPA is null and void, and no person or entity has any right to collect, attempt to collect, receive, or retain any money from the borrower related to such loan. In other words, if a lender collects money from someone via an illegal loan, they must give that person their money back.

Loans made by an unlicensed lender to an Illinois resident at an interest rate greater than nine percent also violate the Illinois Interest Act, which allows a consumer to recover statutory damages of twice the interest contracted for—a serious penalty.

Illinois means business when it comes to protecting its citizens from usurious loans. It is a felony for an unlicensed lender to make a loan with interest higher than 20 percent. The interest rates on loans made by Minto Money all exceed 500 percent, and Minto Money is not licensed by the State of Illinois.

Loans made by Minto Money are illegal in the State of Illinois. Period.

 

Q&A

What can I do about my payday loan?

Loans like those made by Minto Money, ZocaLoans, and First Loan are illegal in most states. If a court determines that your loan violates state law, you may not be required to pay it back.

In fact, individuals who have been targeted by this type of illegal lending practice may be able to recoup the money that they lost, in addition to compensation for the suffering these companies have caused. 

 

Contact

What Wallace Miller is doing to fight payday loans

Wallace Miller is proud to fight for all those who have been harmed by the oppressive lending practices of Minto Money, ZocaLoans, and First Loan, and other similar payday lenders. Our predatory lending team, led by Matthew J. Goldstein, is working hard to hold the people responsible for these abusive lending operations accountable.

The legal team at Wallace Miller has more than 100 years of cumulative experience fighting for consumers’ rights. All consultations are completely free and confidential, and there are no out-of-pocket fees—our law firm only receives payment if you do.

Have you suffered from predatory lending practices? We may be able to help. Give us a call at (331) 425-8022 and we’ll help you decide on the best path forward.