Business ProfileforMariner Finance, LLC

The company's website states that Mariner Finance is "a wholly owned subsidiary of 1st Mariner Bancorp."

Gov. Action
On 08/16/2022, Pennsylvania Attorney General Josh Shapiro announced today that he leading a multi-state lawsuit against Mariner Finance, LLC for allegedly widespread violations of consumer protection laws. The suit alleges that Mariner Finance charged consumers for hidden add-on products that consumers either didn't know about or didn't agree to buy. Mariner reportedly charged Pennsylvanians $19.5 million for these add-ons from 2015 to 2018 and charged another $8 million in interest over the same period. The lawsuit also alleges that Mariner Finance engaged in illegal, aggressive sales tactics to extend credit to new borrowers. Mariner Finance claims the products were required in order to obtain a loan. The lawsuit also alleges that Mariner Finance engaged in illegal, aggressive sales tactics to extend credit to new borrowers.

The multi-state lawsuit asks the court to order:

- Full restitution to all borrowers affected by Mariner's unlawful
practices.
- Repayment by Mariner of any unlawfully gained profits
Civil penalties.
- Rescission or reformation of all contracts or loan agreements
between Mariner and consumers affected by the company's
practices.
- Mariner to stop charging consumers for add-on products and cease
other allegedly harmful practices.

Borrowers who believe they have been deceived by Mariner's practices should file a complaint with the Bureau of Consumer Protection either online, by phone at 1-800-441-2555, or by email scams@attorneygeneral.gov.

Please note that this matter is pending. For more details, go to:
https://www.attorneygeneral.gov/taking-action/ag-shapiro-takes-action-to-defend-pennsylvanians-from-predatory-personal-lending-company/

Mariner Finance, LLC has provided the following statement in response to the lawsuit:

Mariner Finance has continuously disputed the claims that the small multi-state coalition has alleged and will continue to defend itself as an important provider of credit options to those who may have limited access to other sources of consumer credit. Mariner has been and continues to be committed to compliance with all state and federal regulations, holding itself to a high standard of customer care.

Over the course of nearly four years, Mariner has cooperated with the investigation and provided data, documents and testimony that clearly demonstrates the legality of its products and the vital support they provide to consumers. The states' allegations are based on minimal consumer interviews, the details of which were never shared with Mariner, and reflect a misunderstanding of the law, or simply a decision to ignore any evidence which negates their claims.

The Federal Trade Commission ("FTC") conducted a comprehensive two-year investigation of similar issues as have other state attorneys general, closing their investigations with no action taken. The signatories to this suit appear to give no weight to these investigations nor the regular state examinations that the company is subject to. A full and fair consideration of the investigation evidence should lead to this matter being immediately dismissed with no further action.

A copy of Mariner's press release is available here:
https://www.prnewswire.com/news-releases/mariner-finance-strongly-opposes-misguided-litigation-filed-by-the-pennsylvania-attorney-general-and-a-small-group-of-other-states-301607759.html