Golden Pear Funding Facing Class Action Lawsuit in New Jersey Over Allegedly Illegal Loans

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Golden Pear Funding faces a proposed class action lawsuit out of New Jersey over the company’s allegedly illegal lending practices.

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The 21-page complaint—filed against Golden Pear Funding and its CFO Daniel Amsellem—claims the defendants offer loans to New Jersey consumers involved in personal injury litigation despite not being licensed to conduct business in the state. According to the fraud lawsuit, the New Jersey Consumer Finance Licensing Act (NJCFLA) states that any loans Golden Pear Funding made to residents are void due to its unlicensed status.

The Golden Pear Funding lawsuit further alleges the lender has issued loans with excessively high interest and fees. The plaintiff, a New Jersey consumer who took out a $1,500 loan with the company in October 2017, says the interest rate for the first year was around 66 percent and went up to 69 percent the next year. New Jersey law makes it illegal for a lender to charge interest rates exceeding 16 percent per year, the suit relays.

The plaintiff also claims that when she was first issued the loan, Golden Pear Funding charged her two “bogus” fees that were purportedly to cover administrative costs and a federal express overnight delivery, which amounted to $250 and $35, respectively.

Per the case, Golden Pear Funding hid from the plaintiff that it was unlicensed and failed to provide certain mandatory disclosures, such as the loan’s annual percentage rate.

“[The defendants] frustrated [the plaintiff’s] ability to make an informed decision with respect to the loan,” the complaint contends. “Had [the plaintiff] known the loan was void pursuant to the NJCFLA, [the plaintiff] would not have paid the loan[,] let alone enter into an unlawful contract.”

The lawsuit looks to represent anyone with a New Jersey address who entered into a contract with Golden Pear Funding at any time since October 7, 2017.

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