Conservative Viewpoints

"Government is not the solution…it is the problem" -Ronald Reagan



  • ReoAd

    mainstreet_ad_pdf.jpg

    C&LPhoto

McDonnell settles with another car title lender over illegal practices

Posted by Stephen on August 27, 2007

Attorney General Bob McDonnell has settled yet again with two more car title lenders. In an announcement yesterday, the Attorney General said he was “…pleased we were able to reach a fair and reasonable agreement… ”

The two auto tile loan operators in question, Rosemont Auto Title Loans, and Oceana Auto Title Loans were charged with violating the Virginia Consumer Finance Act, by charging upwards of 300% interest on one month loans.

Jay Speer with the Virginia Poverty Law Center points out “This is just another example of how abuses and misuses of loopholes in the Virginia law are being exploited, and hard-working Virginians are paying the price again and again.”

This settlement is only two months after the Attorney General made a similar settlement with Loan Max over their violation of the Consumer Finance Act. The current settlement reached will prevent both Rosemont and Oceana from charging more than 12 percent interest under the Consumer Finance Act, as unlicensed lenders. They are also obligated to refund 99 borrowers who paid their loans in full within two months, a settlement which amounts to $21,459.91.

The two companies are not able to collect interest or deficiency amounts to 34 borrowers totaling to $40,605, and they have to pay $15,000 in the Commonwealth’ s attorney’s fees.

“I Believe these settlements, while mainly a slap on the wrist to the companies involved, serve to emphasize the terrible nature of predatory loans as they continue to exploit working Virginians.” says Dana Wiggins with the Partnership to Encourage Responsible Lending. This marks a step in the right direction to prosecute those who prey on people in financial need.
 
For more information contact Dana Wiggins, Responsible Lending Coordinator, VaPERL at 804.782.9430.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: