Plain Green hit with class action suit

Plain Green LLC, an online loan company owned by the Chippewa Cree Tribe, had a class action lawsuit filed against it in Vermont federal court Wednesday.

The lawsuit was filed by two Vermont residents over the company’s high interest rates and alleged illegal practices. Jessica Gingras and Angela Given have taken out multiple loans from the company and allege that Plain Green has misrepresented its loans.

“Plain Green, its officers and directors have not been served with a complaint and can not respond to media inquiries at this time,” wrote Shelby DeMars in a press statement. “Plain Green is an online lender that provides small short-term loans for emergencies and special needs, is a wholly owned entity of the Chippewa Cree Tribe, and serves to benefit the Tribe’s members with economic development and self-sufficiency.”

DeMars is of The Montana Group, an organization self-described as a “premier government affairs and public relations firm.”

The defendants of the lawsuit, representing Plain Green, are Joel Rosette, the chief executive officer of Plain Green, Tim McInerney, a member of Plain Green’s board of directors, and Ted Whitford, who is also a member of the board.

“Plain Green was created after existing payday lenders approached the Chippewa Cree Tribe of the Rocky Boy’s Reservation … and requested that the Tribe become involved in a payday lending scheme,” the complaint filed in Vermont district court reads. “In the United States, stringent laws have been enacted to prescribe how loans can be made and to prevent lenders from preying on indigent people.”

The plaintiffs maintain that Plain Green has engaged in predatory loan practices that violate the law and have hurt many who struggle with money, according to the complaint.

Legal steps have been taken by the government to stop lenders from giving out loans similar to those of Plain Green’s, but under the “rent-a-tribe” scheme, loan companies can take advantage of tribal immunity and avoid legal liability, the plaintiffs maintain.

Plain Green requires access to the bank accounts of its customers and will remove money from them to ensure they are paid. The company markets their loans as short-term loans that are helping people meet their emergency borrowing needs. The plaintiffs state the loan repayment schedule is not designed to be a short-term loan.

Plain Green blocked Gingras from accessing her Plain Green account, according to the complaint. She originally took out a loan from FBDLoans.com on March 16, 2000, for $1,200. She made 30 payments — 29 for $97.09 and the last for $137.15 for a total of $2,953.76. FBDLoans.com transferred her loan to ThinkCash, which then transferred it to Plain Green.

In 2011 and 2012, she took out multiple loans from Plain Green. The plaintiffs state that Plain Green required Gingras to agree to giving them access to her bank accounts for withdrawals, but continued to withdraw money from her account after the principal amount for the loan and interest was collected.

A jury trial is being demanded by the plaintiffs.

“Plain Green and the Tribe intend to review the complaint and, if appropriate, vigorously pursue their legal rights in response to any such complaint,” DeMars wrote.