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Monterey Collections and Prosper, Inc. Excessive Interest Rates Class Action

According to the complaint for this class action, plaintiff Lazarao Cintron was charged more interest than the state usury law allows.

On February 23, 2015, Prosper, Inc. gave Cintron a personal loan of $4,000 at 17.99% interest, the complaint alleges, under a contract which had a New Jersey choice of law provision.

However, under the usury laws for the state of New Jersey, the maximum permissible rate of interest is 16%. According to the complaint, the contract shows that Prosper intended to charge Cintron more interest than the law allows, and that its intent was “knowing, deliberate, intentional, and willful.”

Later, at some time unknown to Cintron, Prosper transferred or assigned the loan to Monterey Financial Services, which does business under the name of Monterey Collections. In early 2016, Monterey Financial Services began attempting to collect the loan, including the interest charged. According to the complaint, Monterey’s intention to collect more for the loan than the law allows was also “knowing, deliberate, intentional, and willful.”

The class for this action is all persons in New Jersey who entered into a contract with Prosper or Monterey that provides for a higher rate of interest than 16%, from November 10, 2011 to the present.

What remedy does the law provide when companies attempt to charge more than they’re entitled to? The New Jersey law (NJ Rev. Stat. § 31:1-4, 2013) says that when “more than lawful interest was taken or reserved the lender shall be obliged to accept his principal money … without any interest or other consideration, and to pay costs.”

The complaint therefore asks that the court declare that the contract Cintron signed is unlawful and usurious, that it order that all amounts paid in excess of principal be restored to him, and that Prosper, Inc. and Monterey Financial Services/Monterey Collections pay his costs in bringing this action. 

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Monterey Collections and Prosper, Inc. Excessive Interest Rates Complaint

November 10, 2017

According to the complaint for this class action, plaintiff Lazarao Cintron was charged more interest than the state usury law allows. Prosper, Inc. gave Cintron a personal loan of $4,000 at 17.99% interest, the complaint alleges, under a contract which had a New Jersey choice of law provision. However, under the usury laws for the state of New Jersey, the maximum permissible rate of interest is 16%. Later, Prosper transferred or assigned the loan to Monterey Financial Services, which also attempted to collect the loan with its excessive interest rates. 

monterey_collections_fdcpa_complaint.pdf

Case Event History

Monterey Collections and Prosper, Inc. Excessive Interest Rates Complaint

November 10, 2017

According to the complaint for this class action, plaintiff Lazarao Cintron was charged more interest than the state usury law allows. Prosper, Inc. gave Cintron a personal loan of $4,000 at 17.99% interest, the complaint alleges, under a contract which had a New Jersey choice of law provision. However, under the usury laws for the state of New Jersey, the maximum permissible rate of interest is 16%. Later, Prosper transferred or assigned the loan to Monterey Financial Services, which also attempted to collect the loan with its excessive interest rates. 

monterey_collections_fdcpa_complaint.pdf
Tags: Excessive Interest Rate