LAWSUITS NEWS & LEGAL INFORMATION
Consumer Interest Refunds
Richmond, VA: (Mar-25-08) Attorney General Robert McDonnell brought charges against Auto Cash Title Loans LLC, a Richmond-area lender, alleging that it overcharged customers more than the 12% interest allowed under state law. Sources stated that the company had agreed to a settlement with the Attorney General's office, in which it would pay over $25,000 to 115 customers whom it overcharged.
Under the settlement the limited liability company, operating in Richmond and Spotsylvania County, agreed to not collect over $33,000 in remaining debts from borrowers whose vehicles were repossessed after they defaulted on their loans. Additionally, it forfeited more than $89,000 in interest it is owed by 40 borrowers who defaulted on their loans but whose cars were not repossessed; and over $200,000 in interest owed by borrowers who are continuing to make monthly payments on loans made between January 2006 and June 2007.
The settlement, which will be entered as a consent judgment in Richmond Circuit Court, also includes $15,000 in fees for the commonwealth's attorney's office. Sources at the AG's office stated that the settlement is the sixth reached by McDonnell since June 2007 with companies that make loans secured by automobile titles. McDonnell said the six agreements have resulted in refunds of about $459,000 to more than 2,600 borrowers. The deals have also provided almost $7 million in interest and deficient payments that the companies agreed not to collect from borrowers in default. [IN RICH: REFUNDS OWED IN STATE SETTLEMENT WITH LENDER]
Published on Mar-26-08
Under the settlement the limited liability company, operating in Richmond and Spotsylvania County, agreed to not collect over $33,000 in remaining debts from borrowers whose vehicles were repossessed after they defaulted on their loans. Additionally, it forfeited more than $89,000 in interest it is owed by 40 borrowers who defaulted on their loans but whose cars were not repossessed; and over $200,000 in interest owed by borrowers who are continuing to make monthly payments on loans made between January 2006 and June 2007.
The settlement, which will be entered as a consent judgment in Richmond Circuit Court, also includes $15,000 in fees for the commonwealth's attorney's office. Sources at the AG's office stated that the settlement is the sixth reached by McDonnell since June 2007 with companies that make loans secured by automobile titles. McDonnell said the six agreements have resulted in refunds of about $459,000 to more than 2,600 borrowers. The deals have also provided almost $7 million in interest and deficient payments that the companies agreed not to collect from borrowers in default. [
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