North Carolina joins predatory lender lawsuit against Mariner Finance

(The Center Square) – Mariner Finance has been sued by 11 attorneys general, including North Carolina's Josh Stein, amid allegations of illegal business practices.

The lawsuit was first filed in 2022 and was amended to the US District Court for the Eastern District of Pennsylvania earlier this week. Mariner sought to have all claims dismissed earlier this year.

A term often used in description is predatory lending. In most cases, this involves aggressive tactics and unfair loan terms such as high-interest rates and fees. Not everything is clear when borrowers sign.

Prosecutors say Mariner, which is headquartered in Baltimore and has 55 locations in seven states, charged customers for “hidden add-on products that they either did not know about or did not agree to purchase.” Were,” a release said. The lawsuit says Mariner employees did not mention the add-ons or misrepresented them when speaking to consumers.

Mariner is accused of illegal sales tactics with new borrowers, including offering same-day check-in-hand loans. Prosecutors say it used unsolicited “live check” mailings to attract new customers.

In 2019, Mariner charged consumers $121.7 million nationwide in premiums and fees for add-on products.

“We will not tolerate predatory lenders charging secret fees to take advantage of North Carolinians,” Stein said.

Mariner has 39 locations in North Carolina. It is owned by a Wall Street private equity fund managed by Warburg Pincus.

In prosecutors' request for relief, Mariner is being asked to stop charging consumers for add-on products and to cease other harmful practices.

Additionally, Mariner has been asked to fully compensate the borrowers; repaying ill-gotten gains; Civil penalties will be assessed; and cancel or rectify all contracts or credit agreements with consumers affected by the Company's unlawful practices.

Michelle Henry of Pennsylvania leads the list of attorneys general, which in the first filing included the District of Columbia, New Jersey, Oregon, Utah and Washington. The amended complaint now includes Illinois, Indiana, New York, North Carolina, Tennessee and Wisconsin.

For Stein, it is For the second time in about six weeks He has taken action against a business that he believes is hurting North Carolinians. The gubernatorial candidate filed a lawsuit against Auto Money North, which has stores in South Carolina and customers in both states.

In that case, an example cited was a loan of $18,186 that required repayment of $98,339.75 with additional interest and additional fees.