Middlemen for Payday Lenders Under Fire
Illinois Attorney General Lisa Madigan has filed a new lawsuit against MoneyMutual, a lead generator familiar to daytime television viewers from ads pitched by TV personality Montel Williams. MoneyMutual is one of dozens of lead generators that drum up business for payday lenders by taking customer information, such as bank-account numbers and email addresses, and selling that information to payday lenders. The suit alleges that the company is operating as an unlicensed lender, arranging loans that violate Illinois's law limiting the fees that can be charged to borrowers. MoneyMutual was also one of 16 lead generators subpoenaed for marketing illegal payday loans by Benjamin Lawsky, superintendent of the New York Department of Financial Services.