Mike Lindell's 'cash-strapped company' accepts loan with 360% interest then refuses to pay

MyPillow CEO Mike Lindell's company has refused to repay a loan that reportedly includes 360% interest fees.

According to The Minnesota Star Tribune, Lindell's company took out the $600,000 loan during a cashflow panic last month. MyPillow agreed to pay $16,000 a day in interest as a part of the contract.

A lawsuit filed last week claimed that the loan was "usurious, unconscionable and thus unenforceable," and said it should be thrown out by Carver County District Court.

Although usury laws typically cap interest rates for loans, the agreement with Lifetime Funding and CapSpot Financial was structured as a purchase of unpaid MyPillow invoices to get around the restriction.

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The lawsuit described MyPillow as "a cash-strapped business that needed funds quickly."

MyPillow's lawsuit also complained that the practice was "essentially loan sharking" and lashed out at lenders that use "improper tactics and devices to ensure that they will be repaid at grossly inflated rates by hook or by crook."