A $141 million settlement has been reached to resolve claims that online lender American Web Loan violated loan interest laws

A $141 million settlement has been reached to resolve claims that online lender American Web Loan violated loan interest laws
January 29, 2022 pinaxis112

A $141 million settlement has been reached to resolve claims that online lender American Web Loan violated loan interest laws

  • Top Class Actions viewers reported this settlement paying out up to $ as of late .
  • Congratulations to everyone who filed a claim and got paid!
  • On , the Court preliminarily approved the revised American Web Loan settlement.
  • The updated claim deadline for pre-2012 loans through the online lender is .

Plaintiffs in the American Web Loan class action lawsuit claimed that the online lender violated federal law by issuing loans without the authority to do so. The lender allegedly used their status under the Otoe-Missouria Tribe of Oklahoma to issue loans with high interest rates which would otherwise be prohibited under state laws.

However, according to the plaintiffs, American Web Loan can’t skirt state interest rate laws simply because of their tribal affiliation.

“American Web Loan is not a legitimate arm of the tribe and tribal sovereign immunity does not shield American Web Loan or any other defendants from liability in connection with the unlawful online payday lending scheme,” the American Web Loan class action lawsuit argued.

The online lender hasn’t admitted any wrongdoing but has agreed to resolve the claims against them in a settlement valued at $141 million. The online payday loans Texas online lender has agreed to forgive 45,305 loans totaling $76 million and fund a $65 million cash fund.

Under the terms of the deal, Class Members will have their loans cancelled as disputed debt and adjusted to a zero balance. American Web Loan will reportedly request that Clarity Services, the applicable credit reporting agency, delete any credit reporting associated with the cancelled loans.

The settlement will also provide cash payments. Class Members who had a loan issued between will receive flat payments of $20 or a proportional share of the settlement cash fund – depending on the documentation provided with their claim.

Other Class Members who had loans issued between will receive a proportionate share of the cash fund – not a full refund of paid interest.

Class Members who had loans issued between are not required to file a claim form to benefit from the settlement. However, Class Members whose loans were issued between must file a valid claim form by in order to benefit form the settlement.

Claim forms require Class Members to provide a copy of the loan agreement; a copy of a bank statement evidencing the receipt of an American Web Loan loan or a repayment withdrawal in connection with such loan; and/or an email from AWL indicating that a loan application was approved and that funds were being released. If more documentation is provided, payments may be higher.

Potential Award

Class Members will have their loans cancelled as disputed debt and adjusted to a zero balance. American Web Loan will request that Clarity Services, the applicable credit reporting agency, delete any credit reporting associated with the cancelled loans.

Class Members who had a loan issued between will receive flat payments of $20 or a proportional share of the settlement cash fund – depending on the documentation provided with their claim.

Other Class Members who had loans issued between will receive a proportionate share of the cash fund – not a full refund of paid interest.

Consumers can check their eligibility for payments on the settlement’s known Class Member portal. A notice ID and the last four digits of a Class Member’s Social Security number is required to check this portal.

Proof of Purchase

A copy of the loan agreement; a copy of a bank statement evidencing the receipt of an American Web Loan loan or a repayment withdrawal in connection with such loan; and/or an email from AWL indicating that the loan application was approved and that funds were being released.

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