Top Class Actions  |  June 25, 2020

Category: Closed Class Actions

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This settlement is closed!

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In recent legal news, a $2 million MoneyMutual payday loan class action settlement has been reached to resolve claims of unfair lending practices.

The settlement benefits California residents who received a MoneyMutual payday loan between Feb. 11, 2009 and Feb. 8, 2016.

Plaintiffs filed their MoneyMutual payday loan class action lawsuit in 2013, claiming the offshore company and its affiliates issued illegal payday loans to consumers despite lacking the proper licenses to give loans. As a result of these allegedly illegal loans, borrowers such as the plaintiffs reportedly suffered from financial injury.

Payday loans are short term loans which often allow borrowers to access their paycheck amount early. Once the paycheck deposit goes through, borrowers then repay the loan almost instantly. Although these loans can be helpful in a financial crisis, they are often associated with high interest rates or large fees.

According to the MoneyMutual payday loan class action lawsuit, the uncertainty of these loans was enhanced by the fact that lending companies at issue lacked the licensure to issue loans to consumers.

“Every loan made by the unlicensed lenders was illegal under California law for numerous reasons but most importantly because the lender was not licensed by the State of California to make a payday loan or any other type of loan for that matter,” the MoneyMutual class action lawsuit alleged.

“Accordingly, even if the loans had not met the definition of a payday loan the loan would still be illegal under California law because the lender was not licensed which is required of all companies in the business of making loans.”

MoneyMutual has not admitted any wrongdoing but has agreed to settle the claims against them. The company agreed to pay up to $2 million in a MoneyMutual payday loan class action settlement, but noted that a larger settlement would cause the company “severe financial distress” and lead to bankruptcy.

Of the settlement, $675,000 will be divided amongst 17,349 Class Members. If each Class Member submits a valid claim, payments will be $38. However, the MoneyMutual payday loan class action settlement notes that payments will likely be much higher, as not all Class Members will submit a claim. For example, the website notes that payments could be $675 if only 1,000 Class Members submit a claim.

Plaintiffs stated in their settlement motion that the terms of this settlement are fair and reasonable, as they provide monetary relief for consumers without the time and uncertainty of continuing to litigate the issue through to a trial.

“Defendants advised that any effort to bring White Oak into this litigation, or if a judgment were obtained against defendants, would result in the commencement of involuntary bankruptcy proceedings,” the plaintiffs wrote in their initial settlement motion.

“In plaintiffs counsel’s opinion, what would follow would be years of additional litigation with extremely uncertain prospects of recovering anything.”

In order to receive payment under the settlement, Class Members must file a valid claim form by Aug. 26, 2020. Proof or documentation is not required to submit a claim with the MoneyMutual payday loan class action settlement.

The deadline for exclusion or objection was May 28, 2020. The final approval hearing for the MoneyMutual payday loan class action settlement was scheduled for June 19, 2020.

Who’s Eligible

California residents who received a MoneyMutual payday loan between Feb. 11, 2009 and Feb. 8, 2016.

Potential Award

Cash payments of at least $38.

Payments may be more depending on the number of valid claims filed.

Proof of Purchase

N/A

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

8/26/2020

Case Name

Gilbert, et al. v. Bank of America NA, et al., Case No. 4:13-cv-01171, in the U.S. District Court for the Northern District of California

Final Hearing

6/19/2020

Settlement Website
Claims Administrator

Gilbert v. MoneyMutual, LLC Settlement Administrator
c/o CPT Group, Inc.
50 Corporate Park
Irvine, CA 92606
MoneyMutualSettlement@cptgroup.com
1-888-992-0599

Class Counsel

Jeffrey Wilens
LAKESHORE LAW CENTER

Jeffrey P. Spencer
SPENCER LAW FIRM

Defense Counsel

Donald J. Putterman
Michelle L. Landry
PUTTERMAN + YU LLP

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6 thoughts onCalif. MoneyMutual Payday Loan Class Action Settlement

  1. Kay says:

    TCA do you have any idea what the hold up is on this? The Final Approval happened in August and checks were supposed to be mailed within 30 days. The settlement administrator has not responded to multiple emails. Thank you very much.

    1. Kay says:

      Just received a check for $740.39!!!

  2. Allen W. Arbogast says:

    Please add me.

  3. Darryl Kimble says:

    Add me

  4. Darryl K. says:

    Add me

  5. Crystal Connell says:

    Can u tell me if there is a class action lawsuit for amplify or now called lendumo payday loan lender? They are charging me 459.38% interest on a $400 loan I haven’t even paid into the principal yet and I’ve been paying for a year

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Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.