Legal & Disputes
CashNetUSA Faces Nationwide Class Action Over Military Loan Rates as High as 579%
By News Desk ·
Key takeaways
- A proposed nationwide class action, Galvan v. CNU of Alabama, et al., Case No. 1:26-cv-05957 (N.D. Illinois), alleges CashNetUSA loans carried MAPRs from about 222% to 579%.
- The Military Lending Act caps the Military Annual Percentage Rate on covered consumer credit at 36%.
- The plaintiff alleges she was approved for a $2,000 credit limit at a 229% MAPR in November 2023 and still owed $703.79 by June 2025.
A proposed nationwide class action filed in the Northern District of Illinois alleges that CashNetUSA and affiliated companies violated the Military Lending Act by extending consumer loans to active-duty servicemembers and their dependents at Military Annual Percentage Rates ranging from about 222% to 579%. The suit, Galvan v. CNU of Alabama, et al., Case No. 1:26-cv-05957, was announced by PR Newswire on October 28, 2026.
Inside the Galvan Complaint Against CashNetUSA
The lawsuit was filed by the spouse of an active-duty United States Army Staff Sergeant and seeks relief for military families who obtained CashNetUSA loans. The Military Lending Act sets a 36% Military Annual Percentage Rate cap on covered consumer credit, and the complaint alleges CashNetUSA's loans carried MAPRs from approximately 222% to 579%, depending on the loan and state.
The complaint further alleges that CashNetUSA failed to provide required MLA disclosures, required borrowers to give access to their bank accounts as security, included mandatory arbitration provisions, required borrowers to waive jury-trial and class-action rights, and imposed unreasonable pre-suit notice requirements. According to the lawsuit, these violations render the affected loans void from inception, and the plaintiffs seek damages and other relief.
The plaintiff alleges she obtained a CashNetUSA loan in November 2023 while her husband was on active duty, and that CashNetUSA approved her for a $2,000 credit limit at a 229% MAPR. By June 2025, she alleges she had taken at least seven loans and still owed $703.79 despite making thousands of dollars in payments, mostly interest. The suit seeks to represent active-duty servicemembers and their dependents or spouses who entered into covered CashNetUSA or NetCredit loans and made at least one payment.
CashNetUSA's Enova Ownership and State Footprint
CashNetUSA is operated as a subsidiary of Enova International, Inc. (NYSE:ENVA), which provides its corporate governance, capital and infrastructure, according to akta.pro company records. The same records describe CashNetUSA as founded in 2004 and operating in 12 U.S. states: Alabama, Delaware, Idaho, Kansas, Louisiana, Mississippi, Missouri, South Carolina, Tennessee, Texas, Utah and Wisconsin. The records also describe a redirect arrangement with sister brand NetCredit for customers in the 38 states where CashNetUSA does not directly operate.
Other Lending Disputes in Court
Other legal disputes at lending-linked companies include a lawsuit filed against San Lorenzo by Marcelo Moretti for $270,000, with a further $200,000 sought for undocumented funds, reported by LA NACION on October 27, 2026. On October 16, 2026, Premium Times Nigeria reported that the Federal High Court in Lagos upheld UBA's appointment of receiver Romeo Ese in a N156 billion debt recovery suit against Stallion Group.
What Comes Next in the CashNetUSA Case
Varnell & Warwick, P.A. is seeking active-duty servicemembers and military spouses who obtained CashNetUSA or NetCredit loans and made at least one payment to contact the firm about the lawsuit.