Attorney General Phil Weiser announced that over 1,600 people will receive restitution checks averaging $516 as part of a settlement reached last year with debt collector TrueAccord.
“One of the most important parts of my job is getting money back into the pockets of Colorado consumers who are wronged by companies engaging in illegal practices,” Weiser said. “Colorado’s caps on high-interest loans are designed to protect borrowers from predatory lending, and my department will hold accountable any lenders and debt collectors who break the law, just as we did in this case.”
In September 2022, investigators with the Department of Law found that, from 2017 to 2022, TrueAccord collected or attempted to collect on roughly 29,000 consumers who defaulted on loans issued by tribal lending entities. These lenders typically operate online and advertise to consumers that their loans are subject to tribal law, rather than Colorado law. Most loans had interest rates over 500% APR, and some approached 900% APR—far greater than the 12% cap for unlicensed loans under Colorado law.
TrueAccord violated state law by telling consumers they owed the full loan balance when they collected or attempted to collect on the debt. For loans made by unlicensed lenders, state law says consumers have no obligation to pay finance charges greater than 12% and it entitles them to refunds if they do pay.
Eligible consumers will begin receiving checks in the mail in the coming weeks. Consumers who receive these checks are encouraged to cash them quickly to avoid any delay in receiving their restitution.
Since taking office, Weiser has secured more than $500 million in refunds, restitution, credits, and debt relief for Colorado consumers.
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