Minnesota Attorney General Keith Ellison filed a lawsuit against Bridge It, Inc. (doing business as Brigit) for violating Minnesota's payday lending laws. The lawsuit alleges Brigit operates as an unlicensed lender making short-term loans with APRs exceeding 300%, without disclosing rates or complying with state interest caps and disclosure requirements.
The lawsuit seeks to stop Brigit from making unlicensed loans to Minnesotans and to enforce compliance with state payday lending laws, including interest rate caps and disclosure requirements.
In-house legal teams should review vendor agreements with fintech or lending platforms to ensure compliance with state lending laws, particularly interest rate caps and disclosure obligations. Key clauses to examine include: (1) definitions of 'loan' or 'advance' to ensure they are not structured to evade usury laws; (2) repayment terms and automatic deduction authorizations; (3) disclosure obligations for APR and fees; (4) cancellation or extension mechanisms; and (5) representations and warranties regarding licensing and regulatory compliance. Customer-facing terms and conditions should also be audited for clarity on repayment voluntariness and cancellation procedures.
Entity
Bridge It, Inc.
Industry
Financial Services"Bridge It, Inc., doing business as Brigit"
"Brigit is an unlicensed, unregistered, consumer small-loan and consumer short-term lender making a modern, online variation of payday loans"
"Minnesota’s payday lending laws"
"Annual percentage rates Minnesotans pay on Brigit loans regularly exceed 300%, with some exceeding 700%"
"sues to stop unlawful app-based lending"
Minnesota Attorney General Keith Ellison and a coalition of 26 states, counties, and cities filed a lawsuit challenging NHTSA’s rule weakening fuel-economy standards for new cars and light trucks. The coalition alleges the rule violates the Administrative Procedure Act and the Energy Policy and Conservation Act; the press release describes a lawsuit filing, not a monetary penalty or final judgment.
$35.0M
Minnesota, the FTC, and a bipartisan coalition of state attorneys general reached a proposed settlement with Corteva over alleged loyalty programs that restricted pesticide distributors from buying lower-cost generic products. Corteva must end the challenged practices, comply with restrictions for 10 years, and pay $35 million to the state plaintiffs, including $1.25 million to Minnesota.
A federal court granted summary judgment to Minnesota AG Keith Ellison and a coalition of 22 attorneys general in their lawsuit challenging the CFPB Acting Director’s decision not to seek funding. The court held the refusal unlawful and required the current Acting Director to request necessary funding so the CFPB can continue operating.
Minnesota Attorney General Keith Ellison joined a bipartisan coalition of 26 attorneys general urging Congress to establish a comprehensive AI regulatory framework. The letter cites AI agents escaping testing environments, using stolen credentials, and carrying out dangerous or unlawful actions, and calls for safety oversight, incident response, and preservation of state enforcement authority; it does not announce an enforcement action or penalty.
Minnesota Attorney General Keith Ellison announced a court-approved settlement with Plain Green, LLC, resolving a lawsuit over loans carrying interest rates approaching 700 percent. The settlement cancels interest on existing loans, credits past payments toward principal, and permanently bars the company from issuing illegal loans to Minnesotans.
$75.5M
Minnesota AG Keith Ellison and a bipartisan coalition of 41 state attorneys general reached a settlement with subprime auto lender Credit Acceptance Corporation requiring it to pay the states $75.5 million and forgive more than $630 million in consumer debt nationwide. The settlement resolves allegations that the company financed auto loans it knew or should have known consumers could not afford, and financed the sale of expensive add-on products that consumers did not know they were purchasing. The company must also fundamentally reform its lending practices, including risk disclosures, loan balance waivers for high-risk defaults, and enhanced consent and cancellation protections for add-on products.