TALLAHASSEE — A Florida court has issued a temporary injunction filed by the state's attorney general against a Miami lender who allegedly made illegal loans to consumers.
According to the Florida Attorney General's Office, the injunction halts Marlin Financial, Inc., which offers loans for cars as collateral, from offering its "debt cancellation product" and repossessing cars through the product. The company's debt cancellation product was supposed to cancel the loan debt if the car put up for collateral is damaged and regarded as a "total loss," but the company charged huge fees for the product," the Attorney General's Office said.
In some cases, the high loan fees were larger than the loan itself and Marlin "misrepresented" information stating customers did not have to buy the debt cancellation product, according to Florida Attorney General Pam Bondi's Office. In addition, the Attorney General's Office alleges customers were charged high interest rates and other fees, which violates the state's Deceptive and Unfair Trade Practices Act.
Bondi's office said it seeks permanent relief with restitution, penalties and setting a constructive trust, which is pending in Hillsboro County Circuit Court.