Herrera Sues Storefront ‘Payday Lenders’ for Prohibited Company Techniques, Deceptive Advertising

Herrera Sues Storefront ‘Payday Lenders’ for Prohibited Company Techniques, Deceptive Advertising

Illegal Lending Schemes by Check ‘n Go, Money Mart Target Low-Income Borrowers With Interest Exceeding 400 Percent APR

BAY AREA (April 26, 2007) — City Attorney Dennis Herrera today filed suit against storefront financing institutions Check ‘n Go and Money Mart, along with their online affiliates and an associated out-of-state bank, for illegal, unfair and fraudulent company methods stemming from their advertising of short-term installment loans at illegal interest levels to low-income borrowers. The lawsuit names Wilmington, Del. -based First Bank of Delaware (OTC: FBOD) as a defendant for aiding and abetting the storefront institutions’ illicit lending schemes in addition to Check ‘n Go, Money Mart and its affiliates.

Check ‘n Go and cash Mart are licensed deferred deposit loan providers, providing “payday loans” by which a debtor provides the loan provider a post-dated sign in change for money. Pay day loans are generally desired by north dakota installment loans low-income and working course families residing paycheck to paycheck. Along with these payday advances, nevertheless, Check ‘n Go illegally provides short-term installment loans for major amounts as high as $1,500 — with annual portion prices surpassing 400 % — through debateable arrangements with on line affiliates and First Bank of Delaware, which Herrera fees are deliberate efforts to circumvent state legislation. ادامه خواندن “Herrera Sues Storefront ‘Payday Lenders’ for Prohibited Company Techniques, Deceptive Advertising”