A lawsuit was brought on behalf of all individuals who obtained a loan from American Web Loan, Inc., its successor,
AWL, Inc., and Clear Creek Lending (a d/b/a of American Web Loan, Inc.) (collectively “AWL”).
The lawsuit claimed, among other things, that AWL violated federal law by making loans at annual interest rates
greater than what is permitted by state law, that AWL did not have a license to lend in any state, that AWL did not
adequately disclose the interest rates, total finance charges, or repayment periods, and that AWL improperly
conditioned its loans on the use of electronic fund transfers.
Defendants deny all allegations in the lawsuit. They maintain that AWL’s loans are legal because the interest rates
and terms were authorized under the law of the Otoe-Missouria Tribe, the federally recognized Native American tribe
that owns and operates AWL, and because AWL borrowers explicitly agreed that Otoe-Missouria law governs the loans.
AWL and certain other Defendants further contend that they are immune from suit because AWL is an arm of the
Otoe-Missouria Tribe. Defendants also contend that: borrowers agreed to arbitrate any disputes; that the loans’
interest rates and other key terms were disclosed to borrowers; and that borrowers were not required to consent to
the use of electronic fund transfers to obtain AWL loans.
The Settlement provides for $141,000,000 in Total Settlement Value, comprised of $65,000,000 in cash and approximately
$76,000,000.00 in cancellation of 45,305 loans as disputed debt.
As part of the proposed Settlement, borrowers who took out an AWL loan from February 10, 2010 to June 26, 2020 may
be entitled to a cash payment. Certain AWL loans that are deemed to be in “collection” by AWL will be cancelled as
disputed debt. In addition, AWL will request that the credit reporting bureau, Clarity Services, delete any negative
credit reporting related to these loans.
If you took out your loan(s) between February 10, 2010 and December 31, 2011, you must demonstrate your eligibility
for a cash recovery from the Settlement by following the procedures described in the Notice.