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Illegal Lending

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Illegal Lending

This page describes the Attorney General’s response to illegal lending as of April 2014

Read the Attorney General’s Report on Illegal Lending (dated April 23, 2014)

Read the "Fact Sheet" summarizing the Report. Click here or go back to read more background information on illegal lending and loan issues

Relevant Vermont Laws

  • Consumer Protection Act provision on “Unlicensed loan transactions” (including payment processors): 9 V.S.A. § 2481w
  • Licensing requirements: 8 V.S.A.§ 2201; 8 V.S.A. § 2233
  • All lending requirements: Title 8, Chapter 73
  • Interest rate limits: 9 V.S.A. § 41a
  • Settlements

    CashCure, LLC (Delaware LLC)
    "CashCall, Inc. & Western Sky, et al. (California and So. Dakota online lender and servicer)
    "Government Employees Credit Center, Inc.(Delaware online lender)
    "Sure Advance, LLC (Delaware online lender)
    "T Money, LLC (“T-money”; California payment processor)

    Lawsuits

    PBT Loan Services, et al. (Florida online lender)
    Cash in a Wink (Delaware online lender)
    Intercept Corporation (No. Dakota payment processor)

    Cease and Desist Letters

    Letter to 81 known unlicensed lenders: demanding compliance with VT law
    List of all known unlicensed lenders and contact information

    Advisory Letter and Requests for Assistance

    Letter to Vermont Association of Broadcasting
    Letter to Comcast Corporation
    Letter to DISH Network Corp
    Letter to DirecTV
    Letter to Google, Inc
    Letter to Yahoo! Inc
    Letter to Microsoft Corporation
    Letter to NACHA – The Electronic Payments Association
    Letter to Electronic Transactions Association
    Letter to Third-Party Payment Processors Association
    Letter to Vermont Bankers Association, Inc. and Association of Vermont Credit Unions
    Letter to Vermont Employers

    Consumer Tips

  • Alternatives to an online loan, including:
  • Ask your employer about participating in the United Way’s “Working Bridges” income advance loan program -- for more information, visit: http://www.unitedwaycc.org/resources-for-companies/working-bridges/
  • Send your lender and a copy to your bank or credit union the "Cancellation Form to revoke access to your bank account and cancel the loan
  • Read the Attorney General’s Report (pp. 11-13 for “consumer tips”)
  • Contact the Attorney General: AGO.UnlicensedLending@state.vt.us
  • Sign up for news or alerts from the Attorney General’s email list on illegal lending: http://list.state.vt.us/guest/RemoteListSummary/UnlicensedLending
  •   Website consulting provided by The National Association of Attorneys General.