Attorney General Josh Kaul of Wisconsin has taken a stand against predatory lending practices by joining a multistate lawsuit targeting Mariner Finance for violating consumer protection laws. The lawsuit alleges that Mariner Finance engaged in deceptive practices by charging consumers for hidden add-on products without their consent, leading to significant financial harm.
According to Attorney General Kaul, the lawsuit accuses Mariner Finance of misleading consumers and adding substantial amounts to their loan obligations through undisclosed fees and premiums. In 2019 alone, Mariner Finance reportedly charged consumers $121.7 million nationwide for add-on products, excluding interest on these charges.
The lawsuit further claims that Mariner Finance employees either neglected to inform consumers about these add-on products or misrepresented them. Some consumers were falsely informed that the products were mandatory to secure a loan, while others were charged for add-ons they explicitly declined. These practices, including aggressive sales tactics and misleading marketing strategies, could potentially trap consumers in a cycle of debt.
Mariner Finance, a company with branches across Wisconsin and multiple states, has faced legal action from various state attorneys general since August 2022. The recent developments in the lawsuit saw Wisconsin and five other states granted permission to intervene, aiming to hold Mariner Finance accountable for its actions.
The lawsuit seeks various forms of relief, including full restitution for affected borrowers, repayment of unlawfully acquired profits, civil penalties, and a halt to the charging of add-on products by Mariner Finance. The ultimate goal is to stop the company from engaging in harmful practices that exploit consumers.
With the legal battle intensifying, Attorney General Kaul and his counterparts are committed to defending the rights of Wisconsinites and consumers across the country against predatory lending practices.