RALEIGH, N.C. — North Carolina Attorney General Josh Stein has joined a multistate, bipartisan lawsuit against Mariner Finance over predatory lending practices.
The lawsuit alleges that Mariner Finance has repeatedly violated numerous consumer protection laws. This includes charging people in North Carolina for hidden add-on products they did not know they were buying.
According to the lawsuit, the company's employees did not inform customers about the add-on products or misled people about the extra fees. Through hidden fees and add-on products, people were repaying much more than they believed they were paying as outlined in their borrowing agreement. In 2019, Mariner charged people $121.7 million in premiums and fees for add-on products.
The lawsuit also alleges that the company practiced illegal and predatory sales tactics to extend credit to new borrowers. This includes mailing out unsolicited "live checks" to people and aggressively pushing people to refinance and take on more debt, which also came with hidden fees.
These practices, as Stein argues, resulted in a cycle of debt that many people are struggling to overcome.
In suing Mariner Finance, Stein is joining the Attorneys General from multiple other states, including Illinois, Indiana, New Jersey, New York, Oregon, Pennsylvania, Tennessee, Washington, Wisconsin and the District of Columbia.
A copy of the full complaint is available here.