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New York — Private Equity A lender owned by the company Warburg Pincus LLC was sued Tuesday by several U.S. states, charging underfunded borrowers hundreds of millions of dollars for 'hidden' add-on products they never agreed to buy. was accused of
Mariner Finance, with more than 480 offices in 27 states, has been accused of selling overpriced insurance policies and other products to borrowers without telling them or after being instructed not to do so. He was accused of being involved in "extensive credit insurance packaging."
Plaintiffs in Pennsylvania, New Jersey, Oregon, Utah, Washington State, and Washington, D.C. also allege that Mariner encouraged employees to refinance unnecessary loans to borrowers, resulting in higher fees. and urged them to sell it. more addons.
The Office of Pennsylvania Attorney General Josh Shapiro said, "This kind of predatory sales practice can lead consumers to a cycle of debt that is difficult to overcome."
Many of the accusations are similar to those that have plagued Wells Fargo & Co in recent years, including employees meeting required sales quotas and receiving bonuses for selling more products. What you received, what you were disciplined for if you “failed to upsell,” etc.
The state accused Warburg, which acquired Mariner in 2013 and oversees more than $85 billion in assets, saying that "Mariner's illegal activities were motivated by its owners' high-growth demands. It is what was done,” he said.
In a statement, Mariner founder and CEO Josh Johnson said a "full and fair consideration" of the evidence would lead to the dismissal of the lawsuit. Stated.
He also said that the Nottingham, Maryland-based company has been working with the state's investigations for nearly four years to provide people with limited access to credit with "credit options." We will continue to defend our position as an important provider of
Warburg has reached out to Mariner for comment.
The New York-based company's president is Timothy Geithner, who as Secretary of the Treasury during the Obama administration criticized predatory lenders. , but is not the defendant.
This lawsuit seeks to resolve the borrower's improper payments and seek civil penalties, full refunds, and repayment of ill-gotten gains.
This case is Pennsylvania et al. v Mariner Finance LLC, United States District Court, Eastern District of Pennsylvania, No. 22-03253. (Reporting by Jonathan Stempel, New York; Editing by Margherita Choi)
