A Tad Usurious: Online Lender Allegedly Charges Up to 251% in Interest

  • District of Columbia AG Karl Racine sued online lender Elevate Credit, Inc. (“Elevate”) for allegedly providing illegal loans to DC residents, using deceptive marketing practices, and charging excessive interest rates on its loans in violation of the Consumer Protection Procedures Act.
  • The complaint alleges that Elevate provided loans without the required money lending license, charged annual percentage rates (“APRs”) ranging from 99% to 251%—far exceeding the statutory 24% and 6% caps on interest—and misleadingly marketed its high interest rate loan products as solutions to the cycle of debt and without disclosing exact APRs, among other things.
  • The complaint seeks injunctive and declaratory relief, restitution, damages, civil penalties, and attorneys’ fees and costs.