Layma in Hot Water: Lawsuit Seeks Damages for Predatory Lending

In the heartland of Illinois, Jennene Stoicescu and Gail Wisinski found themselves entangled in a web of high-interest loans, allegedly spun by a company named Layma, LLC, also known as Little Lake Lending. The online lending entity, as they claim, used the names of Native American tribes as a shield to circumvent state usury laws.

The story began when Stoicescu and Wisinski, like many others, sought financial assistance online. They were drawn to Layma, LLC, which presented itself as a tribal lending entity. The loans were conveniently disbursed via ACH transfer, a method that many online lenders use. However, the convenience soon turned into a nightmare as they found themselves trapped in a cycle of debt, allegedly due to the company's predatory lending practices.

According to the lawsuit, Layma, LLC, operated by non-Native American individuals, exploited the names of Native American tribes to evade state usury laws. This 'rent-a-tribe' scheme, as the plaintiffs call it, is a tactic where non-Native American individuals operate lending businesses under the guise of Native American tribal ownership. The lawsuit further alleges that Layma, LLC's lending activities did not actually occur on the tribes' reservations, and the economic benefit primarily went to non-Native American individuals.

The plaintiffs allege that the company violated the Illinois Interest Act, which prohibits loans made at more than 9% interest. They also claim that Layma, LLC violated the Illinois Predatory Loan Prevention Act and the Illinois Consumer Fraud and Deceptive Business Practices Act. These laws are designed to protect consumers from unfair, deceptive, and predatory lending practices. The plaintiffs argue that Layma, LLC's actions are a clear violation of these laws.

In addition to these state laws, the plaintiffs also allege that Layma, LLC violated the Racketeer Influenced and Corrupt Organizations Act (RICO). They claim that the company conducted the affairs of an enterprise through a pattern of collection of unlawful debt, which is a violation of RICO.

The plaintiffs are seeking a declaratory judgment that the loans are void and an injunction against their collection. They are also seeking damages under the Illinois Interest Act, the Illinois Predatory Loan Prevention Act, and the Illinois Consumer Fraud Act. Furthermore, they are seeking treble damages under RICO. The damages include injunctive relief, declaratory relief, restitution of amounts collected on the loans, statutory damages, compensatory damages, punitive damages, attorney's fees, litigation expenses, and costs of suit.

The lawsuit serves as a stark reminder of the potential pitfalls of online lending. It highlights the need for consumers to be vigilant and for regulators to keep a close eye on online lending practices. As this case unfolds, it will be interesting to see how the court interprets the laws in question and whether it will hold Layma, LLC accountable for its alleged actions.