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LEGAL NEWSLINE

Wednesday, April 24, 2024

Ariz AG settles with Lowrate.com

Horne

PHOENIX (Legal Newsline) - Arizona Attorney General Tom Horne announced an agreement on Monday with a Scottsdale-based loan services company that allegedly sent personal consumer information to payday lenders.

Under the terms of the assurance of discontinuance, Double C's LLC, doing business as Lowrate.com, agreed to: comply with the Arizona Consumer Fraud Act; not transmit, sell, collect or solicit the personal information of any consumer without disclosing that the company will not control to whom or how the information is used; and not transmit, sell, collect or solicit any Arizona consumer's information for a consumer or payday loan application.

While Double C's did not make payday loans to consumers in Arizona, its Lowrate.com website allegedly solicited Arizona consumers for payday loans. The website allegedly requested that consumers provide personal information, including routing numbers, bank accounts, social security numbers, driver's licenses, addresses and names on a loan application. The website allegedly represented that it would protect the consumer information from unauthorized use.

Lowrate.com allegedly transferred the personal information of consumers to a third party that operates a lead marketplace. In the lead marketplace, multiple payday lenders or lead buyers were allegedly able to buy the information for the purpose of lending the consumers money using a payday loan.

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