Spotloan High Interest Rates Class Action Settlement

UPDATE 2: On Sept. 13, 2020, Top Class Actions viewers started receiving checks in the mail from the Spotloan class action settlement worth $168. Congratulations to everyone who filed a claim and got PAID!

UPDATE: The Spotloan High Interest Rates Class Action Settlement was granted final approval on July 9, 2020. Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.

BlueChip Financial has agreed to pay $18.5 million to resolve claims that Spotloan interest rates and loan terms were illegal.

The settlement benefits individuals who obtained a loan from Spotloan between Jan. 1, 2012 and Oct. 31, 2018. Around 366,000 individuals are thought to be included in this settlement Class.

The Spotloan interest rates class action claims that BlueChip Financial, doing business as Spotloan, provided loans with excessive interest rates. Allegedly, Douglas Merrill – the former CIO for Google – and his company ZestFinance worked with BlueChip to issue short term loans with sky high interest rates. In some cases, interest rates were allegedly as high as 460 percent.

Plaintiffs in the Spotloan interest class action also claimed that the companies lacked the proper state licensing to provide loans in various states.

The defendants have denied any wrongdoing brought against them in the Spotloan interest rates class action lawsuit. According to the defendants, the company which owns and operated BlueChip is governed by tribal laws which authorize the interest rates and terms at issue.

However, despite disputing the allegations, the defendants have agreed to pay $18.5 million in a settlement and wipe out $170 million in consumer debt.

“Although the defendants are solvent, they are not large, multinational corporations, they have finite resources and the potential judgment in any one of these cases would exceed what any defendant could reasonably afford,” the plaintiffs wrote in their settlement motion.

In their motion for preliminary approval, the plaintiffs noted that the settlement was an opportunity to recover any losses. Additionally, the plaintiffs state that BlueChip could dodge liability in the suit based on their tribal status – further showing that the settlement is a good deal.

Loan cancellation is available for all Spotloan loans made before Nov. 1, 2018 and owned by BlueChip Financial as of Dec. 31, 2019. As a part of this benefits, BlueChip will contact consumer reporting agencies and request that they delete relevant loan information including any late payments previously reported.

Payments from the $18.5 million settlement fund will be distributed on a pro rata basis. Although consumers will not be able to receive a full refund payment, they will receive a proportional share of the fund based on their state’s legal interest rate, whether they repair the original principal loan amount, and how much they paid.

The final settlement benefits comes from BlueChip’s promise not to sell or transfer any remaining unpaid accounts to third-parties. The lender has also agreed not to share certain borrow information with third-parties.

No claim form is required as part of the Spotloan interest rates class action settlement. If Class Members wish to exclude themselves or object to the settlement, they must do so by May 26, 2020. The final approval hearing is scheduled for June 30, 2020.

Who’s Eligible

Individuals who obtained a loan from Spotloan between Jan. 1, 2012 and Oct. 31, 2018.

Potential Award

Loan cancellation for Spotloan loans made before Nov. 1, 2018 and owned by BlueChip Financial as of Dec. 31, 2019. Eligible loans with be adjusted to a zero balance and BlueChip will ask consumer reporting agencies to delete any information from credit reports. This includes if any payment was previously reported as late.

Consumer refunds are also a part of the $18.5 million settlement. Class Members will receive a proportional share of the fund based on their state’s legal interest rate, whether they repair the original principal loan amount, and how much they paid.

Proof of Purchase

N/A

Claim Form

There is no Claim Form for this settlement. Class members with further questions can click here for more information.

Exclusion Deadline

5/26/2020

Case Name

Turner, et al. v. ZestFinance Inc., et al., Case No. 3:19-cv-00293, in the U.S. District Court for the Eastern District of Virginia

Final Hearing

6/30/2020

Settlement Website

www.BCFSettlement.com

Claims Administrator

Spotloan Settlement
c/o RSM US LLP
PO Box 1367
Blue Bell, PA 19422
questions@BCFSettlement.com
1 (833) 535-0557

Class Counsel

Leonard A. Bennett
Craig C. Marchiando
CONSUMER LITIGATION ASSOCIATES PC

Kristi C. Kelly
Andrew J. Guzzo
Casey S. Nash
KELLY GUZZO PLC

E. Michelle Drake
John G. Albanese
BERGER MONTAGUE

Beth E. Terrell
Jennifer Rust Murray
Elizabeth A. Adams
TERRELL MARSHALL LAW GROUP PLLC

Matthew Wessler
GUPTA WESSLER PLLC

Defense Counsel

For Merrill and ZestFinance:
Shon Morgan
John W. Baumann
M. Loughran Potter
Patrick Stafford
QUINN EMANUEL URQUHART & SULLIVAN LLP

For BlueChip Financial:
Brendan D. O’Toole
Calvin W. Fowler Jr.
Turner A. Broughton
WILLIAMS MULLEN

Scott M. Pearson
Kay Fitz-Patrick
MANATT PHELPS & PHILLIPS LLP

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