On March 19, 2014, Illinois Attorney General Lisa Madigan filed suit against All Credit Lenders, a Chicago-area short-term lender, claiming that the lender evaded Illinois’ 36 percent interest-rate cap. It’s not unusual to see state attorneys general go after a rogue lender of this manner, but Madigan’s suit was different than previous AG forays—it invoked the federal Consumer Financial Protection Act, using Dodd-Frank to file a civil suit for unfair, deceptive or abusive acts or practices. At the time, it was the first state suit separate from the Consumer Financial Protection Bureau.
As this case shows, many state attorneys general are beginning to expand their views into completely new territories. Some of these areas reflect inquiries made by federal agencies, while others represent a direct response to local concerns.
