Do you want to get the full details about this AWL Settlement? You are at the right place, Continue reading for more details.
What is The AWL Settlement
This class action is called American Web Loan Class Action. However the settlement is closed. Here are a few details about the settlement.
- The Lawsuit was brought on behalf of all individuals who obtained a loan from American Web Loan, Inc., its successor, AWL, Inc., and Clear Creek Lending (a d/b/a of American Web Loan, Inc.) (collectively “AWL”).
- The lawsuit claimed, among other things, that AWL violated federal law by making loans at annual interest rates greater than what is permitted by state law, that AWL did not have a license to lend in any state, that AWL did not adequately disclose the interest rates, total finance charges, or repayment periods, and that AWL improperly conditioned its loans on the use of electronic fund transfers.
- The Settlement provides for cash payments totaling $86,000,000 and the cancellation of certain loans as disputed debt.
Defendants deny all allegations in the lawsuit. They maintain that AWL’s loans are legal because the interest rates and terms were authorized under the law of the Otoe-Missouria Tribe, the federally recognized Native American tribe that owns and operates AWL, and because AWL borrowers explicitly agreed that Otoe-Missouria law governs the loans.
What is the Lawsuit All about
The lawsuit claimed, among other things, that AWL violated federal law by making loans at annual interest rates greater than what is permitted by state law, that AWL did not have a license to lend in any state, that AWL did not adequately disclose the interest rates, total finance charges, or repayment periods, and that AWL improperly conditioned its loans on the use of electronic fund transfers. As part of the proposed Settlement, borrowers who took out a AWL loan from February 10, 2010 to June 26, 2020 may be entitled to a cash payment. All AWL loans issued prior to June 26, 2020 that AWL still owns will be cancelled as disputed debt as well as the AWL loans sold to Northwood Asset Management Group, LLC that are unsatisfied. In addition, AWL and Northwood will request that the credit reporting bureau, Clarity Services, delete any negative credit reporting related to these loans.
How to know if you are in the settlement class
You are a member of the Settlement Class If you took out your loan(s) between Feb. 10, 2010, and June 26, 2020.
What To Do To Receive A Payment From This Settlement
The settlement is closed already.
How much would This Setlement Pay?
The settlement paid up to $119.46 as of late October 2021.
Conclusion
A $141 million settlement was reached to resolve claims that online lender American Web Loan violated loan interest laws. The settlement deal benefits individuals who obtained a loan from American Web Loan between Feb. 10, 2010, and June 26, 2020.
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