- Colorado AG Phil Weiser reached a settlement with non-bank lenders Marlette Funding LLC, and Avant of Colorado LLC and several out-of-state banks to settle allegations that Marlette and Avant “rented” the banks in a scheme to circumvent Colorado’s interest rate limits.
- The complaints against Marlette and Avant allege that each lender violated Colorado’s finance charge and late fee limitations, and unlawfully enforced bank statutory interest rate exportation rights through assignment of loans for which they were the true lenders even though the loans were originated by the “rented” banks.
- Under the terms of the assurance of discontinuance, Marlette, Avant, and the banks jointly will pay $1.05 million to the state of which $525,000 will be used for attorneys’ fees and costs and $500,000 will be paid to the Department of Education for K-12 financial education.