Illegal Lending Schemes by Check ‘n Go, cash Mart Target Low-Income Borrowers With Interest Exceeding 400 Percent APR
SAN FRANCISCO BAY AREA (April 26, 2007) — City Attorney Dennis Herrera today filed suit against storefront financing institutions Check ‘n Go and cash Mart, along with their online affiliates and an associated bank that is out-of-state for illegal, unjust and fraudulent company methods stemming from their advertising of short-term installment loans at unlawful interest levels to low-income borrowers. In addition to test ‘n Go, cash Mart and its particular affiliates, the lawsuit names Wilmington, Del. -based very first Bank of Delaware (OTC: FBOD) as being a defendant for aiding and abetting the storefront organizations’ illicit lending schemes.
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 exchange for cash. Continue reading Herrera Sues Storefront ‘Payday Lenders’ for Prohibited Company Methods, Deceptive Advertising