Golden Valley Lending, Inc., Silver Cloud Financial, Inc., Mountain Summit Financial, Inc., and Majestic Lake Financial, Inc.
The Consumer Financial Protection Bureau (CFPB) today took action
against four online lenders–Golden Valley Lending, Inc., Silver Cloud
Financial, Inc., Mountain Summit Financial, Inc., and Majestic Lake Financial,
Inc.–for deceiving consumers by collecting debt they were not legally owed.
In a suit filed in federal court, the CFPB alleges that the four lenders could
not legally collect on these debts because the loans were void under state laws
governing interest rate caps or the licensing of lenders. The CFPB alleges that
the lenders made deceptive demands and illegally took money from consumer bank
accounts for debts that consumers did not legally owe. The CFPB seeks to stop
the unlawful practices, recoup relief for harmed consumers, and impose a
CFPB Sues Four Online Lenders for Collecting on Debts Consumers Did Not Legally Owe