Attorneys general from 11 states have filed a lawsuit against Mariner Finance, accusing the alternative finance lender of predatory practices such as hidden add-on products, deceptive sales tactics, and charging high fees.
Originally filed in 2022, the lawsuit alleges that Mariner employees misrepresented or failed to disclose add-on products, costing consumers $121.7 million in premiums and fees in 2019 alone.
Mariner, which has 55 locations across seven states, is owned by a Wall Street private equity fund managed by Warburg Pincus.
The attorneys general are seeking relief in the form of restitution for borrowers, repayment of unlawful profits, civil penalties, and reformation of contracts affected by Mariner's practices.
This lawsuit marks the second recent action by North Carolina Attorney General Josh Stein against a lender he believes is harming consumers.
Our Opinion:
This news brings to the forefront the challenge of balancing business needs with ethical practices. While alternative lenders play a crucial role in serving a segment of the population overlooked by traditional banking services, they must ensure ethical standards to discourage predatory practices. It is also an appeal to regulators for better guidelines, which can help shape the alternative financing industry into an equitable, transparent, and responsible player in the financial sector.
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