Mike Lindell, the CEO of MyPillow, has filed a lawsuit against Cobalt Funding Solutions, alleging that the company engaged in illegal lending practices. The lawsuit, initiated in Minnesota, stems from a $1.5 million cash advance that Lindell secured in 2021, which was coupled with an astounding 409% interest rate. Lindell’s legal claims highlight that this rate violates Minnesota’s usury laws. Lindell claims that his financial troubles have been exacerbated by the exorbitant payments required under the loan terms, which he describes as predatory and exploitative. ‘I had no choice but to take the cash advance,’ Lindell stated. ‘But I expected fair terms, not this usury.’ The suit illustrates a broader trend, where increasing economic pressures have driven individuals and businesses into the hands of predatory lenders. In August, Lindell also reported that he had taken out a payday loan to help with his debts, mentioning the ongoing financial troubles faced by his company following business downturns linked to his political controversies. Additionally, Lindell is already involved in litigation against several other lending entities, indicating a pattern in his approach to handling these financial disputes. As the legal battles continue, observers note that Lindell’s business practices and financial management may face increased scrutiny.
