8.18.20
On Tuesday, August 18, the parties to the litigation by the Attorney General of Colorado, as Administrator of the Colorado Uniform Consumer Credit Code, against Avant and Marlette have agreed to settle the litigation. The settlement allows the MPL platforms to continue to work with sponsor banks without being subject to state allegations that federal preemption does not apply to assignees or that the platforms are the true lenders on the loans, provided that the loans have an APR of under 36% and are subject to certain requirements and restrictions imposed by the settlement. A detailed write-up by Chapman and Cutler LLP explaining the terms of this settlement, and discussing the implications for other programs and partnerships, is available here.