Reviewed by Matthew J. Goldstein.
Across the United States, predatory lenders make short-term, high-interest loans to consumers in financial need. These loans are designed to—and often do—trap consumers in a cycle of debt while the illegal lending company and its business partners and investors rake in enormous profit. However, under state usury, licensing, and consumer protection laws, many of these loans are illegal and void.
“Graph With Stacks Of Coins” by kenteegardin is licensed under CC BY-SA 2.0.
Wallace Miller filed a class action lawsuit on behalf of five of its clients who received a predatory and unlawful loan nominally made by Minto Money. The lawsuit, Scales, et al. v. Jay McGraw, et al., No. 1:24-cv-11575 (N.D. Ill.) is pending in the U.S. District Court for the Northern District of Illinois. If you’ve received a loan from Minto Money, you may be eligible to join the lawsuit and fight for compensation.
Not sure if you qualify? Reach out to the dedicated team at Wallace Miller at (312) 261-6193 or via our online questionnaire. We’ll help you assess your case and discuss if a lawsuit may be the best path forward.
Timeline
November 11, 2024 — Wallace Miller files a lawsuit against Minto Money and its business partners alleging that they have violated state and federal law.
2021 — Illinois passes the Predatory Loan Prevention Act (PLPA), which sets an interest rate cap of 36% on loans made by licensed lenders. Loans made in violation of the PLPA are void.
1968 — The Truth in Lending Act provides the first standardized requirements for presenting loan information to consumers.
Protecting Illinois consumers from payday loan companies
In an effort to protect consumers from usurious loans (or loans made at unreasonably high interest rates) the Illinois General Assembly passed the Illinois Predatory Loan Prevention Act (PLPA) in 2021. The PLPA is designed to stamp out predatory loans and protect borrowers by prohibiting a lender from making a loan to an Illinois resident at an interest rate higher than 36%.
Loans made in violation of the PLPA are null and void, and no person or entity has any right to collect, attempt to collect, receive, or retain any money from the borrower related to such loan. In other words, if entities collect money from a consumer on an illegal loan, they must give the consumer their money back.
Loans made by an unlicensed lender—like Minto Money—to an Illinois resident at an interest rate greater than nine percent also violate the Illinois Interest Act, which permits a consumer to recover statutory damages of twice the interest contracted for—a serious penalty. Illinois means business when it comes to protecting its citizens from usurious loans: it is a felony for an unlicensed lender to make a loan at an interest rate exceeding 20 percent. The interest rates on loans made by Minto Money all exceed 300 percent, and Minto Money is not licensed by the State of Illinois to make loans.
Image by Pixabay.
What can consumers do about payday loans?
Loans like those made by Minto Money or other predatory lending companies are illegal in almost every state. If a court determines that your loan violates state law, you may not have to pay it back. In fact, consumers who have been targeted by this type of lending practice may be able to recoup the money that they lost, in addition to other damages.
A class action lawsuit allows people harmed in similar ways to file a combined lawsuit. The group of plaintiffs, called the “class,” is represented legally by one or a few individuals. This allows many cases against a defendant or group of defendants to be decided more fairly and efficiently.
To create this type of litigation, attorneys for the plaintiffs will ask a judge to “certify” the class, or formally decide that the class can bring their suits as a class action.
Attorney Matthew J. Goldstein.
Wallace Miller sues Minto Financial in federal court
On November 11, 2024, Wallace Miller attorneys Mark R. Miller, Edward A. Wallace, and Matthew J. Goldstein filed a class action against Minto Money and others in the United States District Court for the Northern District of Illinois. The plaintiffs will request that the District Judge certify the action as a class action.
What we’re doing to fight high-interest loans
At Wallace Miller, we fight hard to protect consumers’ rights and hold businesses accountable for their illegal and abusive practices. We believe that individuals harmed by illegal payday loans deserve compensation—and that legal action is sometimes the only way to let these companies know that their actions will not be tolerated.
Our legal team has more than 100 years of cumulative experience fighting for consumers’ rights. All consultations are confidential and free of charge. And there are no out-of-pocket costs or fees—because we work on a contingency model, our firm only receives payment if you do.
Have you received a high-interest loan from Minto Money? We may be able to help. Give us a call at (312) 261-6193 and we’ll help you decide on the best path forward.
Left to right: Nicholas P. Kelly, Edward A. Wallace, Molly Condon Wells, Mark R. Miller, Jessica Wieczorkiewicz, Timothy E. Jackson. Not pictured: Alexandrea M. Messner, Julia Ozello, Kristina J. Anderson, Kathleen B McGivney, David A. Neiman.