Payday lenders told to release documents |
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Wed, 11 Apr 2007 22:24
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CHARLESTON, W.Va. (AP) - A Kanawha County Circuit Court judge has ordered 10 Internet payday lenders to produce documents subpoenaed by state Attorney General Darrell McGraw's office.Judge Paul Zakaib also ordered the lenders to stop making or collecting payday loans in West Virginia until further notice.Payday loans are short-term loans or cash advances, typically for 14 days, with high interest rates. Internet payday loans are secured by the consumer giving the lender permission to electronically debit the full amount owed, plus interest, from a personal checking account.McGraw's Consumer Protection Division began investigating these loan practices in 2005 after hearing that some companies were sidestepping West Virginia usury laws by providing loans online.Agency officials say in some cases, consumers were charged annual percentage rates ranging from 600 percent to 800 percent, which is more than 44 times the maximum allowable rate of 18 percent APR for similar consumer loans in West Virginia.Since the office began its investigation, it has reached settlement agreements with at least 17 Internet payday lenders. Agency officials say these settlements have resulted in $225,000 in refunds and canceled debts for more than 1,600 West Virginia consumers.Assistant Attorney General Norman Googel said Zakaib granted the Attorney General's petition in February, but there was a delay in getting it entered in writing.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Payday lending closer to legal in Ga. 