In a significant legal move, a class action lawsuit has been filed against an online lender accused of engaging in predatory lending practices with exorbitant interest rates. The complaint was lodged by Jennine Stoicescu on June 3, 2024, in the United States District Court for the Northern District of Illinois against GreatPlains Finance, LLC, operating as Cash Advance Now, Newport Funding, LLC, and other unnamed defendants.
The plaintiff alleges that GreatPlains Finance and its associates have been offering loans to consumers at annual percentage rates exceeding 500%, far above the legal limit. These loans were allegedly financed by Newport Funding and involved several other parties identified as John Does 1-20. Stoicescu is seeking declaratory judgment to void these loans and an injunction to prevent their collection. Additionally, she is pursuing damages under multiple Illinois statutes including the Illinois Interest Act and the Illinois Predatory Loan Prevention Act, as well as treble damages under the Racketeer Influenced and Corrupt Organizations Act (RICO).
According to the court documents, Stoicescu obtained two loans from GreatPlains Finance on October 6, 2022, and January 6, 2023. Despite making payments on these loans, she found herself ensnared in a cycle of debt due to interest rates that exceeded 100%. She asserts that these loans were marketed and administered entirely through digital means while she was residing in Illinois. The complaint details how GreatPlains Finance purportedly operates under the guise of tribal sovereignty through its association with the Fort Belknap Indian Community but fails to meet the criteria for sovereign immunity.
The filing further explains that GreatPlains Finance secured a $10 million loan from non-tribal lenders managed by Newport Funding in November 2021. This financial arrangement included various fees and interest obligations which prioritized payments to Newport Funding over any tribal entities. When alleged financial mismanagement led to changes within the tribal council in January 2023, Newport Funding declared an event of default and took control over GreatPlains Finance's financial accounts.
Stoicescu's lawsuit emphasizes that these lending practices violate multiple state laws designed to protect consumers from usurious interest rates. Specifically, it points out that any loan made at more than 9% interest without proper licensing is illegal under Illinois law. The complaint also highlights past actions taken by the Illinois Department of Financial and Professional Regulation against similar unlicensed lenders operating online.
The plaintiffs are demanding comprehensive relief from the court including injunctive relief to halt further collection efforts on these voided loans, restitution for amounts already collected from borrowers, statutory damages under relevant Illinois laws, compensatory and punitive damages for violations of consumer protection statutes, and treble damages under RICO provisions.
Representing Stoicescu are attorneys Daniel A. Edelman, Heather Kolbus, and Luke M. Coughlin from Edelman Combs Latturner & Goodwin LLC. The case is being presided over by Judge [Name] under Case ID: 1:24-cv-04563.