Aug. 18, 2020, 8:15 PM; Up to date: Aug. 18, 2020, 10:13 PM
Colorado has reached a settlement with 4 lenders that establishes a framework for bank-fintech partnerships to function legally within the state with client protections in opposition to high-interest loans.
The settlement filed Tuesday with on-line lenders Avant LLC and Marlette Funding and their bank companions, WebBank Inc. and Cross River, resolves allegations that their lending preparations violated state usury limits.
The state alleged in 2017 that Avant and Marlette have been the “true lenders” of loans made to Colorado customers. The fintech lenders skirted the state’s usury limits by way of their partnerships with out-of-state banks, that are allowed to situation loans at increased curiosity…