Illinois Sues Short-Term Credit Firm Over Abusive Account Protection Fees

Illinois Attorney General Lisa Madigan has filed a consumer fraud suit against a short-term loan company saying that it is defying the state’s payday lending statute by layering abusive account protection fees into its consumer credit products (Illinois v. CMK Investments Inc.).

Madigan filed suit March 18 in Cook County Circuit Court against Elgin, Ill.-based CMK Investments Inc., which provides consumer credit products under the name All Credit Lenders Inc. The suit, filed under the Illinois Consumer Fraud and Deceptive Business Practices Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act, objects to abusive lending practices ...