Federal judge denies Mariner Finance’s motion to dismiss

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Earlier this month, a federal judge rejected Mariner Finance’s bid to dismiss a multi-state lawsuit filed in 2022 that includes New Jersey.

The lawsuit alleges that the private equity-owned lender charged borrowers millions of dollars in hidden additional loan products and interest.

According to filings, consumers are routinely charged for these add-ons without their permission or because they have explicitly rejected such offers, resulting in costs ranging from hundreds to thousands of dollars. The company is said to have incurred additional debt. The lawsuit further alleges that Mariner specifically took advantage of vulnerable customers who had limited access to financing and were burdened with debt, and encouraged employees to attach add-ons with bonuses. Management employees whose branch locations did not meet Mariner’s minimum sales goals for these products were punished, according to the complaint.

Mariner Finance, based in Nottingham, Maryland, has nine branches in the Garden State.

In his motion, Mr. Mariner asked the U.S. District Court for the Eastern District of Pennsylvania to dismiss all 15 federal and state claims in the Pennsylvania-led multistate lawsuit.

In a 35-page opinion dated January 12, Judge Kelly Hodge dismissed Mariner’s claims in their entirety. The move reaffirms the authority of state attorneys general to jointly bring claims under the federal Consumer Financial Protection Act in one court, potentially allowing states to conserve resources and expedite litigation. .

The ruling moves the case one step closer to trial and was praised by leaders of the New Jersey Attorney General’s Office and the Division of Consumer Affairs.

“This ruling marks a major step forward in the state’s case against companies that sought to avoid liability for allegedly defrauding consumers of millions of dollars,” said Attorney General Matthew Platkin.

“On behalf of the vulnerable consumers who fell victim to the fraud detailed in our complaint, we are grateful that the court rejected Mariner’s efforts to have this lawsuit dismissed.” said Kari Fais, acting director of the Department of Consumer Affairs.

Mariner Finance did not respond to requests for comment for publication.