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Bankers Healthcare Group “Commercial” Loans to Consumers Class Action

Bankers Healthcare Group, LLC (BHG) is a financial company that makes loans to healthcare-related individuals and businesses. The complaint for this class action alleges that the company has been making loans to individual healthcare workers but has disguised them as loans to businesses by putting the letter “d/b/a” before the borrowers’ names. The complaint claims that this allows it to earn more on its loans and to get around certain licensing and disclosure requirements that must be met for lending to consumers.

The class for this action is all individuals in the US to whom BHG made a loan with a loan agreement showing the letters “d/b/a” in front of the borrower’s name. A California Subclass has also been defined for those whose loan agreements show a California address as the debtor’s address.

The plaintiff in this case, Sherette Flowers, received mail, phone, and e-mail solicitations suggesting she apply to BHG for a loan. The materials were addresses to her individually, and not to a business. Flowers was a registered nurse (RN) or nurse practitioner (NP).

Around January 2020, she decided to take a loan to pay off her credit card and buy a car. The complaint alleges, “During the application process, BHG knew from its oral conversation with [Flowers]—and from [Flowers’s] personal financial documents provided to BHG—that [Flowers] did not own any medical practice or other business of her own, but instead, had corporate employers who paid her on an hourly or per diem basis…”

On around January 28, 2020, BHG gave Flowers a loan agreement which, the complaint alleges, “consisted mostly of fine-print legal terminology. Substantially none of the terms in BHG’s Loan Agreement were written in language that would be understandable to a layperson-consumer like [Flowers].”

Federal and state laws required that BHG inform Flowers of the annual percentage rate (APR) for the loan, but BHG did not do this. It also did not make other disclosures that it would have to make if it were making a consumer loan.

According to the complaint, “BHG falsely drafted its Loan Agreement to [Flowers] as a ‘commercial loan’ to a ‘business’: a purported ‘sole proprietorship’ called ‘Sherette S. Flowers d/b/a Sherette S. Flowers, N.P.’” It also made references to a “commercial loan” within the document.

However, no such sole proprietorship existed, the complaint alleges, and BHG knew this because of the materials and communications that had been exchanged during the application and approval processes. BHG had only asked for Flowers’s employee pay stubs and her individual tax returns. She had never provided any documentation for any business.

The complaint alleges, “BHG has intentionally baited [Flowers] and other consumers into extremely expensive personal loans, without making the financial disclosures required by law for consumer loans.”

Article Type: Lawsuit
Topic: Loans

Most Recent Case Event

Bankers Healthcare Group “Commercial” Loans to Consumers Class Action

August 26, 2021

Bankers Healthcare Group, LLC (BHG) is a financial company that makes loans to healthcare-related individuals and businesses. The complaint for this class action alleges that the company has been making loans to individual healthcare workers but has disguised them as loans to businesses by putting the letter “d/b/a” before the borrowers’ names. The complaint claims that this allows it to earn more on its loans and to get around certain licensing and disclosure requirements that must be met for lending to consumers.

Bankers Healthcare Group “Commercial” Loans to Consumers Class Action

Case Event History

Bankers Healthcare Group “Commercial” Loans to Consumers Class Action

August 26, 2021

Bankers Healthcare Group, LLC (BHG) is a financial company that makes loans to healthcare-related individuals and businesses. The complaint for this class action alleges that the company has been making loans to individual healthcare workers but has disguised them as loans to businesses by putting the letter “d/b/a” before the borrowers’ names. The complaint claims that this allows it to earn more on its loans and to get around certain licensing and disclosure requirements that must be met for lending to consumers.

Bankers Healthcare Group “Commercial” Loans to Consumers Class Action
Tags: Loan-Related Unfair Practices, TILA