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MobiLoans violated RICO, according to class action lawsuit filed by consumers

LEGAL NEWSLINE

Thursday, November 21, 2024

MobiLoans violated RICO, according to class action lawsuit filed by consumers

Lawsuits
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RICHMOND, Va. — Consumers have filed a class-action lawsuit against MobiLoans, LLC, an Internet lending website, citing alleged unjust enrichment, violations of RICO, 18 U.S.C. § 1962(C) and (D), violations of Virginia Usury Laws, and Indiana Usury Laws.

Tamara Price, George Hengle, Regina Nolte and Sherry Blackburn filed a complaint on behalf of themselves and all individuals similarly situated on Oct. 16, in the U.S. District Court for the Eastern District of Virginia against MobiLoans LLC, alleging that the Internet lending website participated in illegal lending scheme.

According to the complaint, the plaintiffs allege that they electronically obtained lines of credit originated through MobiLoans while they were in Virginia and Indiana. 

Accordingly, the loan product received by plaintiffs were void and uncollectable under Virginia law. Va. Code § 6.2-1541(A) and Indiana law Ind. Code §§ 24-4.5-5-202, 24-4.5-7-409. 

The plaintiffs hold MobiLoans LLC responsible because neither MobiLoans nor any of the other participants in the illegal lending scheme had a consumer finance license when they extended the lines of credit to the plaintiffs nor did they ever attempt to obtain such a license. 

Additionally, because plaintiffs’ loan products were null and void, it was unlawful for MobiLoans to collect or receive any principal, interest, or charges on the loans, including amounts paid by plaintiffs.

The plaintiffs request a trial by jury and seek certification for this matter to proceed as a class action; declaratory, injunctive, and damages relief; attorney’s fees, litigation expenses, and costs of suit; and such other or further relief as the court deems proper. 

They are represented by Kristi C. Kelly, Andrew J. Guzzo, and Casey Nash of Kelly & Crandall PLC in Fairfax, Leonard A. Bennett, Craig C. Marchiando, and Elizabeth W. Hanes of Consumer Litigation Associates P.C. in Newport News, and James W. Speer of Virginia Poverty Law Center in Richmond.

U.S. District Court for the Eastern District of Virginia Case number 3:18-cv-00711-MHL 

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