Online Lender Settles Deceptive and Unfair Loan Charges for $3.85 million
On April 15, 2019, Avant LLC (Avant), an online lending company, settled Federal Trade Commission (FTC) charges that it engaged in deceptive and unfair lending practices. Avant offers unsecured consumer loans through its website. The FTC charged that Avant falsely claimed that it would accept credit card or debit payments, when in fact it did not accept either in many cases. The FTC also charged that Avant withdrew money from consumer accounts or credit cards without authorization. In one case, Avant debited a consumer’s account 11 times in a single day instead of just a single monthly payment. The FTC imposed a $3.85 million judgment on Avant and the money will be returned to the affected consumers.
CLA’s financial institution regulatory compliance team assists banks and credit unions nationwide in establishing regulatory compliance programs, conducting compliance testing, and training staff on regulations. Justin Robinson is a member of CLA’s regulatory compliance team and can be reached at justin.robinson@CLAconnect.com.
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