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, as well as their online affiliates as well as an associated bank that is out-of-state for illegal, unjust and fraudulent company techniques stemming from their advertising of short-term installment loans at illegal rates of interest to low-income borrowers. In addition to test ‘n Go, cash Mart and its own affiliates, the lawsuit names Wilmington, Del. -based very first Bank of Delaware (OTC: FBOD) being a defendant for aiding and abetting the storefront organizations’ illicit financing schemes.
Check ‘n Go and cash Mart are licensed deposit that is deferred, providing “payday loans” by which a borrower provides loan provider a post-dated sign in trade for money. Payday advances ‘re normally desired by low-income and working course families residing paycheck to paycheck. (more…)