Elevate, a fintech, entered into a settlement with the District of Columbia to resolve a suit brought by the District of Columbia in regard to the fintech’s activities related to two bank loan programs facilitated and advertised by the fintech. The banks were not parties to the suit or the settlement. The case and settlement follow a pattern of state regulator’s bypassing the banks and bringing actions against service providers and fintechs.
Under the settlement the fintech agreed not to (i) provide or advertise loans or lines of credit to District of Columbia consumers at an interest rate above 24% APR; (ii) act as a service provider to a lender that provides loans or lines of credit to District of Columbia consumers at an interest rate above 24% APR; or (iiii) represent that it is permitted to offer loans or lines of credit in the District of Columbia without possessing any required District of Columbia money lender license. Read More