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NCA in the Community: Q3 & Q4 Highlights

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Predatory Tribal Lenders Must Pay Class $50M In RICO Suit


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Predatory Tribal Lenders Must Pay Class $50M In RICO Suit
Law360 (March 31, 2021, 6:59 PM EDT) A Virginia federal judge approved a $50 million class action settlement against entities related to a financier that issued predatory loans with inflated annual rates of more than 440% and avoided ramifications by partnering with Native American businesses for immunity.
The class of borrowers, led by Darlene Gibbs, sued three main entities  TCV V LP, a group of Sequoia Capital companies, and National Credit Adjusters LLC involved in predatory loan structures that violated the Racketeer Influenced and Corrupt Organizations Act.
The model, according to an amended class action complaint in October, is when predatory entities partner with tribal businesses, which. ....

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Debt collectors, payday lenders collected over $500 million in federal pandemic relief


Debt collectors, payday lenders collected over $500 million in federal pandemic relief
Peter Whoriskey, Joel Jacobs, Aaron Gregg
© Michael S. Williamson/The Washington Post
A customer leaves a payday loan store in Maryland. The check-cashing and payday loan services industry has thousands of branch offices nationwide.
A Texas firm that describes itself as one of the nation’s largest medical bill collectors was racking up consumer complaints last year.
“For months this company has been reporting inaccurate, unverifiable, erroneous things on my credit report and I am sick of it!!!” states one consumer’s report to the Consumer Financial Protection Bureau in January 2020. ....

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