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

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

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