Greenline Loans lawsuit: what Spurr v. Greenline Loans alleges

In May 2024 an Illinois borrower filed a proposed class action against Greenline Loans and several related parties. The case is called Spurr v. Greenline Loans et al. Below is what the complaint alleges, what we could and couldn't confirm, and why it matters if you're considering a loan.

The case at a glance

• Case: Spurr v. Greenline Loans et al., No. 1:2024cv03614
• Court: U.S. District Court for the Northern District of Illinois
• Filed: May 3, 2024
• Defendants named: Greenline Loans, Waawaatesi LLC, LDF Holdings, LLC, an individual identified as Jessi Lee Phillips Lorenzo, and unnamed John Does
• Sources: public docket and the filed complaint

What the complaint claims

The lawsuit says the loans made to Illinois residents were usurious and illegal under Illinois law, including the Illinois Predatory Loan Prevention Act, which caps most consumer loans at 36% APR. It seeks damages on behalf of the named borrower and a proposed class of Illinois borrowers.

Its central argument is the "rent-a-tribe" theory. The complaint alleges that the tribal lending entity is a front, and that the substantive work of the lending business is done by people and companies that aren't part of the tribe. If a court agreed, the lender might not be able to rely on tribal sovereign immunity to avoid state interest-rate limits.

The complaint also describes the business's history. It says Greenline Loans previously operated in connection with a different tribe in Montana, using the same website, before the brand was associated with Waawaatesi LLC and the Lac du Flambeau Band in Wisconsin. It quotes a BBB note that the business told the BBB in August 2020 it had relocated to Lac du Flambeau.

What we couldn't confirm

We couldn't find a public record of how the case ended. Lawsuits like this are often sent to arbitration because tribal loan agreements usually contain arbitration clauses, and some settle privately. Either outcome can leave little on the public record. Treat the case as an open question, not as proof of wrongdoing or of innocence.

What it means if you're thinking about borrowing

• Your legal protections may be limited. Tribal lenders argue state rate caps don't apply to them. Whether that holds is exactly what cases like this test.
• Read the arbitration clause. Most tribal loan agreements send disputes to arbitration and waive class actions. Know what you're agreeing to before you sign.
• Check your state's rules. Illinois, where this case was filed, caps most consumer loans at 36% APR. Our state guide shows where the lender currently operates.
• Keep records. Save your loan agreement, payment history, and any correspondence. If you have a dispute, you can file a complaint with the CFPB.

Is Greenline Loans still legit?

The lender is a real, operating business with a B+ rating on its BBB profile, and we found no CFPB or state regulator enforcement action specifically against it. A pending lawsuit doesn't make a company a scam. It does mean the legal structure behind 300%+ APR tribal loans is being challenged, which is worth weighing alongside the cost. Our legitimacy breakdown covers the rest.