- Tennessee AG Jonathan Skrmetti reached an $11.1 million settlement with Mariner Finance resolving allegations that the company violated the Consumer Financial Protection Act and other consumer protection laws through deceptive lending practices and hidden add-on products.
- As previously reported, Tennessee was part of a bipartisan coalition of AGs that sued Mariner over its lending practices, alleging that the company charged consumers for optional add-ons without adequate disclosures and marketed loans through unsolicited checks that activated loans when cashed.
- Under the proposed consent judgment, Mariner must change how it sells optional products to Tennessee consumers, including providing loan approval disclosures before discussing add-ons, telling consumers that optional products are not required to obtain a loan, and giving consumers a 60-day full refund period for unclaimed optional products.
- The settlement provides $11.1 million in consumer redress, including $1 million for restitution to eligible Tennessee consumers and $10.1 million through cancellation of covered consumer debt, with Mariner also agreeing to pay $150,000 in attorneys’ fees and costs.