Class Action Certified Against Fintech Lender for Home Improvement Loans

In an order issued in January and made public on February 24, a judge in the United States District Court for the Northern District of California granted class certification to consumers alleging a fintech lender’s loan transaction fees were imposed unlawfully, while also granting summary judgment to the lender on claims regarding performance fees due to insufficient evidence.

The lender partnered with contractors and banks to provide point-of-sale loans to consumers for home-improvement and home-maintenance projects. The contractors used a technology platform developed by the fintech lender to offer financing offers to the consumer. The complaint alleges, among other claims, that the company violates California’s Credit Services Act, including by collecting transaction and performance fees, failing to provide specific disclosures, and failing to…