Virginia AG Untangles Online Lending Web And Obtains $50 Million Judgment

In March 2018, the Predatory Lending Unit of the Virginia Attorney General Office's Complaint against online lender Future Income Payments ("FIP") began with the words of Sir Walter Scott: "what a tangled web we weave when we first practice to deceive."¹ The lawsuit charged FIP with disguising unlawful loans – in excess of 183% per annum – through using "sales terminology" in an attempt to evade Virginia's consumer lending laws.² On November 15, this web was untangled and resulted in a $50 million judgment against FIP including:

• $20,098,160 in debt forgiveness for borrowers;
• $31,740,000 as a civil penalty;
• $414,474 in restitution;
• $198,000 for costs and attorneys' fees;