"Since the premiums and fees are financed, these add-ons increase interest payments by an average of about $180 in interest to the loan, for a total added cost to the consumer of approximately $540," the lawsuit said. Added on insurance counted for $360 per loan, not including interest.
The average loan size was $3,650, with an average rate of 28%, the suit said. Mariner disputed the suit in a statement from founder and CEO Josh Johnson, who said the firm cooperated with the investigation and provided data, documents, and testimony "that clearly demonstrates the legality of its products and the vital support they provide to consumers." The suit seeks restitution for consumers as well as civil penalties and the repayment of profits, among other consequences. In reality, Mariner deploys aggressive, high-pressure sales tactics, dictated by a profit-driven model that operates according to the famous maxim articulated in Glengarry Glen Ross: Always Be Closing," the roughly 100-page lawsuit said. "Mariner portrays itself as a community-oriented lender operating small, local branches with strong ties to its local geography. The lawsuit - filed by the attorneys general of the District of Columbia, New Jersey, Oregon, Pennsylvania, Utah, and Washington - alleges that Mariner Finance pressured its sales force to "add on" additional insurance coverage for customers seeking personal and other loans. PHILADELPHIA (AP) - A Maryland-based lender deceived its loan customers by selling them insurance policies they didn't ask for or know about in many cases, the attorneys general of a handful of states claimed in a lawsuit filed Tuesday in federal court in Pennsylvania.
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