This investigation covers all payday loan companies – including Money Mutual.
What's in It for Me?
If the attorneys can speak to enough people who took out payday loans, they may be able to file lawsuits to help these consumers collect compensation under a federal law known as the Fair Credit Reporting Act. In a successful case, consumers may be able to collect up to $1000 in damages per violation.
Attorneys have opened an investigation into potentially illegal and widespread practices in the payday loan industry.
Money Mutual Payday Loans: What’s the Problem?
It is believed that Money Mutual is selling “leads” to third-party lenders rather than fulfilling the loans themselves. This is all despite the fact that the company advertises itself as a payday lender.
In light of these reports, attorneys working with ClassAction.org are investigating the lenders working with Money Mutual to learn more about their payday loan practices. They have reason to believe the way these outside lenders operate is both predatory and illegal.
If you took out a payday loan from Money Mutual within the last two years, you may be able to help get a class action lawsuit started to recover potentially thousands in damages. To learn more, fill out the form on this page. Once you get in touch, one of the attorneys handling this investigation may reach out to you directly. It doesn’t cost anything to talk to a lawyer and you’re never obligated to take legal action just for getting in touch.
How Could Have My Rights Been Violated?
Attorneys believe there are a few different issues with regard to credit reporting and people who take out payday loans. These include the following:
Issue #1: The loan is illegal and the three major credit reporting agencies should have never let it hit the borrower’s credit report.
A number of states have banned payday loans or required companies to have state-issued licenses to sell payday loans. As a result, many of the payday loans being taken out today are illegal.
Despite this fact, it has been alleged that Experian, TransUnion and Equifax arecontinuing to report these debtsin violation of federal law. The Fair Credit Reporting Act (FCRA) requires that credit reporting agencies ensure the information they report is as accurate as possible. When these companies report debts that originate through illegal payday lending schemes, they may be misrepresenting whether a consumer is creditworthy or not.
Experian is among the companies to be sued over this alleged practice. The lawsuit says that the company failed to provide accurate reports for people who took out payday loans from Western Sky and CashCall.
Issue #2: Payday lenders are checking up on borrowers by turning to smaller, consumer reporting agencies – who are giving them inaccurate reports.
Payday lenders have their own network of consumer reporting agencies, in addition to the “big three.” When they’re deciding whether to give someone a loan, it is believed they’re pulling credit reports from small consumer reporting agencies to help determine whether the potential borrower has been paying back his or her payday loans.
Some attorneys suspect that these smaller companies are printing inaccurate reports and question whether the payday lender even had the right to request these reports in the first place.
How We Can Help
If you’ve taken out a payday loan from Money Mutual or any other payday lender, get in touch with an attorney in your area. One of the attorneys handling this investigation may then contact you directly. He or she can answer any questions you may have and request your credit report to determine whether your rights have been violated. This doesn’t cost anything and you’re not obligated to take any legal action.
In a successful case, people who had their rights violated under the FCRA may be owed up to $1000 in damages per violation.