Colorado Requires Home Equity Investment Company to Comply with State Consumer Lending Laws

Short summary

Colorado's AG enforced consumer lending laws against a home equity investment company that marketed lump-sum exchanges for home equity stakes. The settlement requires compliance with finance charge limits, enhanced disclosures, and licensing—plus $390,783 restitution to 167 affected consumers and $37,500 to the state. Alternative lenders should evaluate whether their products trigger state lending requirements.

• •Colorado AG requires home equity investment company to comply with consumer lending laws
• •Settlement includes $390,783 restitution to 167 consumers and licensing requirements
• •Alternative lenders should audit whether their products trigger state lending compliance obligations

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