Colorado Attorney General Phil Weiser has detailed a settlement agreement with EasyPay in the wake of his office alleging the consumer lender sought to make illegal, predatory loans.
The Attorney General alleged Easy Pay partnered with an out-of-state bank to circumvent interest rate limits in violation of Colorado law.
“In Colorado, we will continue to vigorously protect consumers from predatory lending practices,” Weiser said. “To that end, we will continue to hold accountable lenders that charge excessive interest rates, often leaving people stuck in a cycle of debt.”
Through the settlement agreement, EasyPay agreed to refrain from lending in Colorado; return $275,000 to Colorado consumers whom it owes over $100 in excess interest; reduce rates on existing loans while agreeing to stop collecting on defaulted loans; and pay the Consumer Credit Enforcement Unit of the Consumer Protection Division in the Colorado Department of Law an additional $100,000 for attorneys’ fees and costs, restitution, for future consumer or creditor educational purposes, for future consumer credit or consumer protection enforcement, or public welfare purposes.
The Consumer Credit Enforcement Unit of the Consumer Protection Division in the Colorado Department of Law investigation determined EasyPay charged interest ranging from 29 percent to 199 percent on small-dollar loans ranging from $350 to nearly $5,000.
Additionally, the investigation showed 78 percent of Easy Pay loans were at rates over 100 percent, and over one-third were over 168 percent APR, with 36 percent of consumers who did not qualify for an interest rebate promotion through 2019 defaulting on their loans.