A class action racketeering lawsuit accuses the company that lends money online through WithULoans of violating Illinois anti-predatory loan laws.
The company, W6LS, Inc., doing business as WithU and WithU Loans "claims to be a corporation organized under the laws of the Otoe Missouria Tribe of Indians, a federally-recognized Indian Tribe in Oklahoma," states the lawsuit, filed in U.S. District Court for the Eastern District of Illinois.
Lead plaintiff Joshua Harris received a $600 loan from the company online, with a disclosed annual percentage rate of 498.63%, the lawsuit states.
The Illinois Predatory Loan Prevention Act makes it illegal unlawful for anyone other than a bank to make loans to Illinois residents at annual percentage rates above 36%, the suit says.
Anyone without a bank or credit union charter or a consumer lending license is limited to 9%, the suit said.
"At no time has any Defendant had a license from the Illinois Department of Financial and Professional Regulation or a state or federal banking or credit union charter, entitling it to make loans to Illinois residents at more than 9% interest," according to the lawsuit. " Defendants nevertheless advertise and make loans to Illinois residents at rates greatly exceeding 9%."
The lawsuit seeks money damages, plus attorney fees.
The plaintiffs are represented by attorneys Daniel A. Edelman, Dulijaza (Julie) Clark and Matthew J. Goldstein, of the firm of Edelman Combs Latturner & Goodwin, of Chicago.