If you’re in financial trouble and have been searching for a payday loan, you may have come across Blue Trust Loans. This online lender allegedly offers quick and easy access to cash loans of up to $3,000, but their interest rates are high and they require payment within weeks.
Unfortunately, many people who take out loans with Blue Trust Loans find themselves unable to pay them back on time. This has led to complaints about aggressive debt collection tactics, harassing phone calls and emails, and even threats of legal action. Some borrowers have gone so far as to file a lawsuit against the lender over their practices.
In this article, we’ll explore the Blue Trust Loans lawsuit in detail. We’ll look at why borrowers are filing suits against this lender, what kinds of legal actions have been taken so far, and what you can do if you’re considering taking out a loan with Blue Trust Loans yourself.
Why Are Borrowers Filing Lawsuits Against Blue Trust Loans?
There are several reasons why borrowers have taken legal action against Blue Trust Loans:
High Interest Rates
One of the biggest complaints about Blue Trust Loans is their high interest rates. The lender charges annual percentage rates (APRs) that range from 471% to 841%, which is significantly higher than most other lenders.
For example, if you take out a $1,000 loan with Blue Trust Loans at an APR of 471%, you’ll end up paying back $1,980 over six months. That’s almost double the amount you borrowed! This makes it incredibly difficult for people on tight budgets to pay off their loans in full without going into further debt.
Aggressive Debt Collection Tactics
Many borrowers who struggle to repay their loans on time report receiving repeated phone calls and emails from Blue Trust Loans demanding payment. Some claim that these calls become threatening or harassing over time.
Under federal law, debt collectors are required to follow certain rules when attempting to collect debts. They cannot use abusive language, threaten violence or legal action that they do not intend to take, or reveal information about the debt to anyone except the borrower and their spouse.
If Blue Trust Loans is violating these rules, borrowers may have grounds for a lawsuit against them.
Automatic Payment Withdrawals
Blue Trust Loans requires borrowers to set up automatic payments through their bank accounts. This means that the lender can withdraw money from your account directly without your permission if you do not have enough funds available to cover your loan payments.
While automatic payments can be convenient for some people, they can also lead to unexpected fees and overdraft charges if there isn’t enough money in your account. Additionally, some borrowers claim that Blue Trust Loans withdrew money from their accounts without proper authorization.
If you’ve experienced any of these issues with Blue Trust Loans, you may be able to join a class-action lawsuit against the lender or file a suit on your own.
What Kinds of Legal Actions Have Been Taken Against Blue Trust Loans?
Several lawsuits have been filed against Blue Trust Loans over the years. Here are some of the most high-profile cases:
United States v. MNE Services Inc., et al.
In 2018, the Federal Trade Commission (FTC) filed a lawsuit against several online payday lenders, including MNE Services Inc., which operates under the name "Blue Trust Loans". The FTC alleged that these lenders engaged in deceptive practices by claiming that they were affiliated with Native American tribes and therefore exempt from state and federal lending laws.
The FTC charged MNE Services Inc. with violating federal laws by making false and misleading statements about their loans and engaging in unfair billing practices. As part of a settlement agreement, MNE Services Inc. agreed to pay $6 million in refunds to affected borrowers and to stop using tribal affiliations as a shield against regulation.
McAllister v. Blue Trust Loans
In 2018, a borrower named Sarah McAllister filed a class-action lawsuit against Blue Trust Loans in the U.S. District Court for the Southern District of Illinois. The suit alleged that Blue Trust Loans violated federal and state laws by charging exorbitant interest rates and engaging in illegal debt collection practices.
The case is still ongoing, but it highlights some of the common complaints that borrowers have about Blue Trust Loans.
There have been several other lawsuits filed against Blue Trust Loans by individual borrowers over the years. These suits typically allege violations of state lending laws or consumer protection statutes, as well as harassment from debt collectors.
What Can You Do If You’re Considering Taking Out a Loan With Blue Trust Loans?
If you’re thinking about taking out a loan with Blue Trust Loans, there are several things you can do to protect yourself:
Research Other Lenders
There are many online lenders out there who offer payday loans at more reasonable interest rates and with less aggressive debt collection tactics. Take some time to research your options before committing to a loan with Blue Trust Loans.
Read the Fine Print
Make sure you understand all of the terms and conditions of any loan agreement before signing it. This includes the interest rate, repayment period, and any fees associated with late payments or automatic withdrawals.
Know Your Rights
As a borrower, you have certain rights under federal law when dealing with debt collectors like those employed by Blue Trust Loans. Familiarize yourself with these rules so that you can recognize when a collector is overstepping their bounds.
Consult an Attorney
If you’ve already taken out a loan with Blue Trust Loans and believe that they’ve engaged in illegal practices, consider speaking with an attorney who specializes in consumer protection law. They may be able to help you file a lawsuit or negotiate a settlement with the lender.
The Blue Trust Loans lawsuit highlights the dangers of taking out payday loans with high interest rates and aggressive repayment terms. If you’re struggling to make ends meet, it’s important to explore all of your options before turning to a lender like Blue Trust Loans.
If you’ve already taken out a loan with this lender and believe that they’ve engaged in illegal practices, don’t hesitate to take action. You may be able to join a class-action lawsuit or file a suit on your own with the help of an attorney.
Remember: knowledge is power when it comes to protecting yourself from predatory lenders. Do your research, read the fine print, and stand up for your rights as a borrower.
What is the Blue Trust Loans lawsuit all about?
The Blue Trust Loans lawsuit is a legal action taken against the lender alleging violations of state and federal lending laws.
Who filed the Blue Trust Loans lawsuit?
The Blue Trust Loans lawsuit was filed by a group of consumers who claim they were victims of predatory lending practices.
What are some examples of predatory lending practices alleged in the Blue Trust Loans lawsuit?
Some examples of predatory lending practices alleged in the Blue Trust Loans lawsuit include charging exorbitant interest rates, imposing hidden fees, and making loans to borrowers who cannot afford them.
What kind of damages are the plaintiffs seeking in the Blue Trust Loans lawsuit?
The plaintiffs in the Blue Trust Loans lawsuit are seeking monetary damages as well as an injunction to prevent further illegal lending practices by the defendant.
How long has Blue Trust Loans been in business?
Blue Trust Loans has been in business since 2014.
Has Blue Trust Loans responded to the allegations made in the lawsuit?
Yes, Blue Trust Loans has denied any wrongdoing and plans to vigorously defend itself against the claims made in the lawsuit.
Is this the first time that Blue Trust Loans has faced legal action?
No, this is not the first time that Blue Trust Loans has faced legal action. The company has previously been sued for similar allegations of illegal lending practices.
Can consumers still apply for loans with Blue Trust while this litigation is ongoing?
Yes, consumers can still apply for loans with Blue Trust while this litigation is ongoing, but it’s important to be aware of potential risks associated with doing so.
Are there any alternatives to borrowing from lenders like Blue Trust that have faced lawsuits for predatory lending practices?
Yes, consumers can explore alternative lending options such as credit unions, community banks and peer-to-peer lenders to find affordable loans without the risk of predatory practices.
What steps should consumers take if they believe they have been a victim of predatory lending practices like those alleged in the Blue Trust Loans lawsuit?
If consumers believe they have been a victim of predatory lending practices like those alleged in the Blue Trust Loans lawsuit, they should consult with an experienced consumer protection attorney to determine their legal options.