Minnesota Sues Several Online Lending Companies Over “Predatory” Loan Practices

ST. PAUL (KVRR) — Minnesota Attorney General Keith Ellison is suing several online lending companies.

Bright Lending, Green Trust Cash and Target Cash Now are accused of consumer fraud after issuing thousands of loans to Minnesotans that were in violation of Minnesota and federal laws.

It is alleged that the companies “predatory” small loans charge anywhere from 400% to 800% in interest.

According to the lawsuit, when people complained about the interest, they were often told Minnesota law that caps rates do not apply because the lenders operate online and are owned by Native American tribes.

Ellison’s office says this is illegal.