In an unusual move, the State of Indiana has had to pay more than $400,000 to a title-loan company to cover the company’s legal fees in its successful suit against the state’s Department of Financial Institutions. Midwest Title Loans, an Illinois-based company represented by Ballard Spahr, had lent money to Indiana residents, had advertised on Indiana TV stations, and had sued to stop enforcement of Indiana’s Uniform Consumer Credit Code.

“Typically, state attorneys general recover substantial penalties from companies in consumer cases,” Ballard Spahr attorneys wrote in a July 18 consumer financial services alert. “However, it is rare for a company to turn the tables and recover substantial attorney’s fees from a state.”

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