Payday Lender Gets Slapped with $760K Fine by MN Attorney General
Every day we receive calls in our office by frantic people that have been caught in payday loan land. It all starts with a short term loan that you anticipate paying back on payday. But what most people don’t realize is that the payday lender has the odds stacked against you, with ridiculous interest rates and fees. Before you know it, you are taking out a second loan to try and pay off the first. And the cycle goes on and on.
Minnesotans are getting a helping hand from their Attorney General Lori Swanson, who is cracking down on these online payday lenders, and winning. The state claimed that payday lender Sure Advance LLC charged MN residents loan shark interest rates, some as high as 1,564%. Sure Advance settled the suit for $760,000, with refund checks going out this week to more than 900 people. They also agreed to stop lending to Minnesotans until the company is licensed to comply with state laws.
This latest settlement is the largest the MN Attorney General has scored out of 8 different lawsuits against payday lenders, 7 of which have settled. Online payday lending is a $13 billion industry, as lenders shift to the web. Consumer advocates warn about these lenders, because borrowers get caught in a vicious cycle and can’t afford repayment. These same people are often then the target of bogus debt collection calls from international fraud rings.
The industry has come under scrutiny by federal and state regulators as well as consumer advocates. Here at Michigan Consumer Credit Lawyers, you have the right to be protected from these loans sharks. People need to know that they have rights under the Fair Debt Collection Practices Act. This federal consumer law prevents debt collectors from using abusive, unfair or deceptive practices. If a debt collector is found to be in violation, the law (“FDCPA”) allows you to sue the collector, stop the calls and get paid damages (up to $1,000) plus all of your attorney costs are covered. We represent you for free. We fight the debt collectors that wish to harass and intimidate consumers. The consumer walks away with a measure of justice and a check from the debt collector.
If you have been victimized by a debt collector or have items on your credit report that are incorrect, call or email Attorney Gary Nitzkin at [email protected] for a free consultation at (888) 293-2882. For more information about your credit rights as a consumer, visit our website at www.micreditlawyer.com for informative, how to videos on consumer financial protection. We are here to fight for you. Call us today! 888-293-2882