| St. Louis woman files class-action suit against payday lender
A St. Louis resident has filed a class-action suit again Advance America, a major payday lender, accusing the company of predatory lending, according to a news release by Simon-Passanante P.C., a St. Louis law firm.
The firm represents Cynthia Williams, the lead plaintiff, in this lawsuit, which was filed Monday.
In the news release, the law firm said at the heart of the lawsuit is the allegation that Advance America systematically traps customers in loans they cannot repay by violating Missouri law.
The firm said the suit was filed against the Spartanburg, S.C.-based company and its subsidiaries Cash Advance Centers of Missouri, doing business as Advance America.
The company operates 2,900 cash advance stores in 37 states, about 82 of which are in Missouri.
Court: Cash advances violate law
HARRISBURG, Pa. (AP) -- A payday lending business violated Pennsylvania consumer law by providing loans of as much as $500 to people in return for 6 percent interest plus a $150 monthly fee, a state court ruled Tuesday. A Commonwealth Court panel agreed with the Banking Department's claim that fees charged by Advance America Cash Advance Centers exceeded limits of the state's Consumer Discount Company Act.
The Banking Department sued Advance America's parent company, NCAS of Delaware LLC, in September, three months after the company began offering the loan product.
The lawsuit called Advance America's $150 "monthly participation fee" an illegal and usurious sham.
The opinion issued Tuesday prevents Advance America from continuing to lend money or "collecting on lines of credit or loans currently outstanding in the Commonwealth of Pennsylvania pursuant to the" violations of state law.
Stumbo says Kentuckians eligible for $888,436 from Ameriquest
Attorney General Gregory D. Stumbo announced today that 2,138 Kentucky consumers are eligible for $888,436 in restitution from Ameriquest Mortgage Company and its related companies as part of a $325 million national settlement of a predatory lending lawsuit against the company.The Attorney General and the Kentucky Office of Financial Institutions began sending letters and claim forms to eligible Kentucky consumers during the week of July 9. To participate in the settlement and receive restitution, consumers must mail completed and signed forms to the settlement administrator by Sept. 10, 2007. The forms, mailed to each consumer, will indicate the minimum payment the consumer can expect to receive.“The exact amount consumers receive could be larger," stated Stumbo. “It will depend on how many eligible Kentucky consumers decide to participate in the settlement.
Lender faces class action suit
A St. Louis woman has filed a class action suit against Advance America, a major payday loan lender, accusing the company of predatory lending, according to a news release by Simon-Passanante P.C., a St. Louis law firm. The firm represents Cynthia Williams, the lead plaintiff, in this lawsuit, which was filed Monday in Cole County. .
Court sides with Banking Dept. in high-cost loan lawsuit
A payday lending business violated Pennsylvania consumer law by providing loans of as much as $500 to people in return for 6 percent interest plus a $150 monthly fee, a state court ruled Tuesday. A Commonwealth Court panel agreed with the Banking Department's claim that fees charged by Advance America Cash Advance Centers exceeded limits of the state's Consumer Discount Company Act. The Banking Department sued Advance America's parent company, NCAS of Delaware LLC, in September, three months after the company began offering the loan product. The lawsuit called Advance America's $150 "monthly participation fee" an illegal and usurious sham. The opinion issued Tuesday prevents Advance America from continuing to lend money or "collecting on lines of credit or loans currently outstanding in the Commonwealth of Pennsylvania pursuant to the" violations of state law.
Kentuckians may be eligible for Ameriquest settlement funds
There is still time for Kentuckians to get part of more than $880,000 in restitution funds from mortgage-lender Ameriquest, as part of a $325 million national settlement of a predatory lending lawsuit against the company.About 2,000 Kentuckians are believed to be eligible for the funds and those wanting to participate should submit an application for them by Sept. 10.The news comes while the mortgage industry in general is in turmoil. The Securities and Exchange Commission on Friday began looking into the vulnerability of Wall Street banks to home-loan defaults. Foreclosures have been taking place at record rates across the country because homeowners took on mortgages too large for their means or were unaware of terms that would change their interest rates.The settlement with Ameriquest resolves allegations by the Attorneys General offices and banking and finance regulators of the District of Columbia and every state except Virginia (where Ameriquest did not do business) that Ameriquest and its affiliates misrepresented and did not adequately disclose the terms of home loans, such as whether a loan carried a fixed or an adjustable rate; charged excessive loan origination fees and prepayment penalties; refinanced borrowers into improper or inappropriate loans; and improperly inflated appraisals used to qualify borrowers for loans.Under the settlement, more than 481,000 borrowers who were customers of Ameriquest Mortgage Company, Town and Country Credit Corporation, and AMC Mortgage Services, Inc.
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