Fitzgerald Vs Wildcat Settlement: $1.4 Billion in Canceled Debt, $37.35 Million Cash, and the Online Lenders Behind the Rates That Were Too High

Hundreds of thousands of Americans took out loans from internet lenders like Lendgreen, Brightstar Cash, Loan at Last, and Sky Trail Cash between 2016 and 2023. The websites had a polished appearance, the application procedure was swift, and the funds were sent into bank accounts promptly—all characteristics of a contemporary fintech lending product. That category did not apply to the rates. These businesses charged annual interest rates that, according to the plaintiffs in the ensuing class action lawsuit, exceeded state legal limits by margins that were not incidental.

This is not the kind of overcharge that occurs at the edges of a complicated regulatory system, but rather the kind that implies the rates were deliberately set higher than what state usury laws allowed. The idea was that since the Lac de Flambeau Band of Lake Superior Chippewa Indians owned the lending enterprises, they were exempt from state legislation due to tribe sovereign immunity. One of the biggest predatory loan settlements in recent memory resulted from the judges’ eventual disagreement.

The U.S. District Court for the Western District of Virginia received the case, Lori Fitzgerald et al. v. Joseph Wildcat Sr. et al., in 2020. It combined claims from borrowers in several states and identified not only the tribal organizations but also the specific tribal officials and non-tribal payday lending partners who ran the companies through servicing agreements. The court believed that these individuals were the real decision-makers behind the lending structure, regardless of the tribal ownership umbrella.

The case depended on that framing. As far as it went, the tribal leaders’ case made sense: tribal sovereign immunity should protect the business from state control, and the loans were issued in accordance with tribal law, which the borrowers had consented to. However, the U.S. District Court determined that the plan did not qualify for that immunity, in part because non-tribal organizations and persons held operational authority and were not similarly protected.

There are two main advantages to the settlement that was finally approved on December 17, 2024. The cancellation of over $1.4 billion in outstanding loan balances is the first and most significant in terms of money. Without having to submit any paperwork, the majority of class members who still owed money on these loans had their balances simply wiped. The second is the $37.35 million cash fund, which was given to borrowers who had either fully repaid their debts or paid interest rates higher than those allowed by law in their state.

Depending on how much a particular borrower had overpaid and how many legitimate claims were drawn from the same pool, the proportional computation of individual cash payments meant amounts varied significantly. Some class members reported receiving payouts in the single digits, such as $4.58 in one case that was recorded on a consumer forum, while others received larger sums. That range is not a problem with the settlement itself, but rather a reflection of the mechanics of pro-rata distribution across a very large class.

It is important to take note of the credit reporting component separately. It was necessary to remove negative credit entries related to these loans from consumer credit reports. These are the kinds of items that impact credit scores and, consequently, housing access, employment background checks, and future borrowing. This is a significant advantage for borrowers who have battled with the debt or defaulted.

Removing a ruined credit report that has followed a person for years has actual economic value that is not reflected in the settlement fund figures. This is a tangible, ongoing harm. In order to mitigate a risk unique to lending organizations that possess comprehensive financial and personal data about their clients, the settlement also forbade tribal authorities from selling or transferring class members’ personal information for commercial purposes.

In March 2025, the first settlement monies were disbursed. According to the May 29 update on the official settlement website, the second distribution—for individuals whose initial payments were successfully delivered—will be made in June 2026. You don’t need to do anything if you were eligible for the second round and received a first payment.

The official settlement website, ConsumerLoanSettlement.com, is the place to check if you received a loan from any of the 20 LDF lending organizations between July 2016 and October 2023 and have not yet investigated your eligibility.