Eight Payday Lender Sued In West Virginia
Eight companies have been sued for offering payday loans online via internet in the state of West Virginia, where payday loans are entirely forbidden. Attorney General Darrell McGraw demanded them to stop giving payday loans.
All the eight companies refused to cooperate with McGraw's investigation that included the companies in question surrendering the records of their accounts in the state mentioned.
The reason why 24 hour payday loans are prohibited in many states including Arizona is that they are capped with a very high interest rate, which is usually 600-800% in APR. By law, in West Virginia interest rates for consumer loans can't be any higher than 18%. The difference is exorbitant, that's why payday loans are considered traps for those who are in a desperate need of money.
Targeted are the companies and individuals in five states - Arizona, California, Delaware, Florida and South Dakota. They are said to play an unfair game.
Attorney General Darrell McGraw has already settled 107 lawsuits with high interest loan lenders, collecting more than $2.4 million in refunds. He has also managed to cancel debts for more than 8,000 residents of West Virginia. Posted on Tue, 2010-09-21 15:45
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