January 28, 2025
Connecticut Banking Commissioner Jorge Perez Announces Settlements with Two Small Loan Companies
Over $1.3 million to be paid back to Connecticut borrowers
HARTFORD - Today, Connecticut Banking Commissioner Jorge Perez announced settlements with two small loan companies who had been engaged in unlicensed activity in the state. As a result of the settlement, more than 900 Connecticut residents will be paid back for interest payments exceeding 12% made on loans. Pay backs to Connecticut borrowers total more than $1.3 million.
“These enforcement actions underscore the need for proper oversight to protect Connecticut borrowers,” said Banking Commissioner Jorge Perez. “I am happy that we were able to obtain the paybacks these borrowers deserve. I would like to acknowledge the hard work and diligence of our Consumer Credit Division, which was responsible for these enforcement actions.”
The first settlement was with Oasis Legal Finance, LLC dba Oasis Financial. In September 2023, Oasis Financial applied for a Small Loan License through the Connecticut Department of Banking’s Consumer Credit Division. Upon receipt of the application the Division requested information concerning Oasis Financial’ s prior Connecticut activity, specifically its practice of advancing funds to Connecticut borrowers with repayment due upon the settlement of legal proceedings. The Department found that Oasis Financial made at least 2,613 small loans, offered or solicited small loans and advertised small loans, all without a license. These loans were made or offered as advancements on legal settlements, which constitute “future income” and therefore were subject to licensure. As a result of the settlement, Oasis Financial will pay back to Connecticut borrowers over $1 million, in addition to a $10,000 fine, and $1,200 in back licensing fees. The full terms of the Consent Order and the details of the restitution can be found here.
The second settlement with US Claims Capital, LLC also involves unlicensed activity in Connecticut. As a result of the Department’s investigation, it was discovered that US Claims was engaged in small loan lending and servicing of loans surrounding litigation settlements of Connecticut borrowers. Once US Claims became aware of the issue, they ceased small lending activity in the state and sought proper licensure from the Department. As a result of the settlement, US Claims will pay back more than $219,000 to over 160 borrowers. They will also pay a $10,000 fine and $2,400 in back licensing fees. You can find the full Consent Order here.
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Media Contacts
Department of Banking:
Matt Smith
matthew.smith@ct.gov
203-996-1241 (cell)