Minnesota Attorney General Keith Ellison filed a lawsuit against Bridge It, Inc. (doing business as Brigit) for violating Minnesota's payday lending laws. The lawsuit alleges Brigit operates as an unlicensed lender making short-term loans with APRs exceeding 300%, without disclosing rates or complying with state interest caps and disclosure requirements.
The lawsuit seeks to stop Brigit from making unlicensed loans to Minnesotans and to enforce compliance with state payday lending laws, including interest rate caps and disclosure requirements.
In-house legal teams should review vendor agreements with fintech or lending platforms to ensure compliance with state lending laws, particularly interest rate caps and disclosure obligations. Key clauses to examine include: (1) definitions of 'loan' or 'advance' to ensure they are not structured to evade usury laws; (2) repayment terms and automatic deduction authorizations; (3) disclosure obligations for APR and fees; (4) cancellation or extension mechanisms; and (5) representations and warranties regarding licensing and regulatory compliance. Customer-facing terms and conditions should also be audited for clarity on repayment voluntariness and cancellation procedures.
Entity
Bridge It, Inc.
Industry
Financial Services"Bridge It, Inc., doing business as Brigit"
"Brigit is an unlicensed, unregistered, consumer small-loan and consumer short-term lender making a modern, online variation of payday loans"
"Minnesota’s payday lending laws"
"Annual percentage rates Minnesotans pay on Brigit loans regularly exceed 300%, with some exceeding 700%"
"sues to stop unlawful app-based lending"
Minnesota Attorney General Keith Ellison issued a consumer alert explaining how veterans, their families, and others who believe Trajector Holdings owes them money can file claims in the company’s Chapter 11 bankruptcy. The release announces no privacy violation, enforcement penalty, or remedy against the company.
Minnesota and 39 other attorneys general filed a notice in Character Technologies, Inc.’s bankruptcy proceedings raising concerns about the company’s safety and privacy practices and the sensitive information it holds, including children’s private chatbot conversations. The states seek protections for consumers in any sale or transfer of the business or assets; the filing does not impose a penalty or establish a final remedy.
The Minnesota Attorney General filed an Assurance of Discontinuance requiring Auto Tech Donations, Inc. to dissolve after finding that its solicitations and governance did not comply with state requirements. Its president was banned from forming or serving as an officer or director of nonprofits and must provide restitution to donors whose vehicles he resold for personal benefit.
Minnesota Attorney General Keith Ellison and a coalition of 26 states, counties, and cities filed a lawsuit challenging NHTSA’s rule weakening fuel-economy standards for new cars and light trucks. The coalition alleges the rule violates the Administrative Procedure Act and the Energy Policy and Conservation Act; the press release describes a lawsuit filing, not a monetary penalty or final judgment.
$35.0M
Minnesota, the FTC, and a bipartisan coalition of state attorneys general reached a proposed settlement with Corteva over alleged loyalty programs that restricted pesticide distributors from buying lower-cost generic products. Corteva must end the challenged practices, comply with restrictions for 10 years, and pay $35 million to the state plaintiffs, including $1.25 million to Minnesota.
A federal court granted summary judgment to Minnesota AG Keith Ellison and a coalition of 22 attorneys general in their lawsuit challenging the CFPB Acting Director’s decision not to seek funding. The court held the refusal unlawful and required the current Acting Director to request necessary funding so the CFPB can continue operating.