Online lender Avant LLC will pay $3.85 million to settle a Federal Trade Commission lawsuit that said the company overcharged consumers and engaged in other deceptive loan servicing practices.
The FTC’s April 15 complaint alleged Avant violated the Telemarketing Sales Rule and the Electronic Fund Transfer Act. The company allegedly told consumers they could repay their unsecured loans via credit or debit cards, but its loan servicing platform would reject those methods of payment. Instead, consumers were required to pay via electronic fund transfers.
“Online lenders need to understand that loan servicing is just as important to consumers as loan...
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(adds details about FTC complaint )