LegalNewsLine Logo  
Saturday, July 4 2009     Subscribe in NewsGator Online
News | Contact LegalNewsline | About Us | Advertise | RSS
Enter search keyword
 
NEWSLETTER
Receive our FREE weekly newsletter
click here
LNL MOST POPULAR ARTICLES
+ U.S. Supreme Court sides with white firefighters in race bias case
+ U.S. Supreme Court: State AGs may probe national lending practices
+ King: Rethink GM bankruptcy plan
+ Obama says Supreme Court 'moving the ball' on affirmative action
+ McKenna argues against federal preemption of consumer laws
LNL HOT TOPICS
+ Asbestos
+ Bankruptcy
+ Big Pharma
+ Class Action
+ Dickie Scruggs
+ Financial Crisis
+ Gasoline Prices
+ Global Warming
+ Hurricane Katrina
+ Lead Paint
+ Personal Injury
+ Sub-Prime Mortgages
State AGs 
 
McGraw files proceedings against lenders
McGraw
CHARLESTON, W. Va. - West Virginia Attorney General Darrell McGraw is getting tired of Internet payday lenders not listening to him.

Wednesday, McGraw sued 17 online lenders for allegedly not complying with his investigative subpoenas, then added contempt of court charges against 10 more that he says have not responded to the Kanawha Circuit Court's orders to do so.

Payday loans are short-term loans, typically for 14 days, that are secured by a post-dated check or by an agreement authorizing an electronic debit for the full loan amount, plus fees, from the consumer's account. They are illegal in West Virginia.

"Our Legislature has outlawed payday loans in West Virginia in order to protect our citizens from falling victim to modern day loan sharks. Nonetheless, these companies have sought to evade West Virginia law by making usurious payday loans to consumers in their homes over the Internet via interactive web sites," McGraw said.

"Today, my office has taken steps in enforcing West Virginia laws against companies that believe they are above the law simply because they operate over the Internet."

Since late 2005, McGraw has been investigating payday lenders who conduct business online. So far, 28 Internet payday lenders have signed settlements that require them to stop collecting payday loans while providing a total of $814,465.11 in canceled debt and refunds for 2,253 consumers.

On Feb. 5, Kanawha Circuit Judge Paul Zakaib told 10 lenders to comply with McGraw's subpoenas, though the Attorney General says they have not done it. Now he's asking that the companies be held in contempt and fined up to $5,000 a day until compliance.

Those companies are: Cash Advance Network, Inc. of Carson City, Nev.; Cash Advance USA of Miami; Cash Advance Marketing, Inc. d/b/a Cash Back Values of Carson City; Cash Net of Salt Lake City; Leads Global d/b/a Cash Today Limited of Reno, Nev.; Cash2day4you.com of Reno; GECC d/b/a Cashdirectnow.com of Rapid City, S.D.; Americash Hotline, LLC d/b/a Direct Cash Express, LLC of Wilmington, Del.; Ambassador Financial Services d/b/a Nationwide Cash of Espanola, Minn.; Quik Payday.com Financial Solutions of Logan, Utah; and USA Cash Center of Rapid City, S.D.

Seventeen others are apparently on the same track, as McGraw has initiated court proceedings against them. They are: AeroAdvance Financial, Inc. of San Jose, Cal.; Cash Supply of Espanola, N.M.; Eastside Lenders.com of West Orange, N.J.; FTR Processing of Shawnee Mission, Kan.; Geneva-Roth Lenders.com of Kansas City; Interim Cash.com of New York; Miami Nation Enterprises d/b/a Ameriloan, d/b/a Cash Advance, d/b/a US Fast Cash, d/b/a United Cash Loan of Miami, Okla. and Carson City; MTE Financial Services d/b/a 500 Fast Cash, d/b/a NoFaxingPaydayLoan.com, d/b/a PayCheckToday.com, d/b/a QuickestPaydayLoan.com, d/b/a Rio Resources, d/b/a XtraCash.com of Miami, Okla. and Albuquerque; My Cash Now of West Vancouver, British Columbia and Chattanooga, Tenn.; Payday Max.com of West Vancouver, British Columbia; Payday Services.com of Columbus, Tenn.; Payday Yes.com of Wilmington; Preferred Cash of Carson City; Route 66 Funding of Albany, N.Y.; Selling Source d/b/a Preferred Cash Loans.com of Las Vegas; SFS, Inc. d/b/a One Click Cash of Niobrara, Neb. and Carson City; and Web Payday of Salt Lake City.

Filed Under: State AGs


COMMENTS ON THIS ARTICLE:

No comments have been posted in the last 15 days!

SEND US YOUR COMMENTS ON THIS ARTICLE:


* - Required fields

Subject: *
Message: *
Contact Name: *
Contact URL:
Contact Email: *
This Is CAPTCHA Image
Write the characters in the image above: 

E-mail this article to a friend | Printer friendly format

MORE NEWS HEADLINES:
+ Five lead plaintiffs named in Bank of America class action - 7/3  
+ States join FTC in targeting business opportunity fraud - 7/3  
+ State AGs reach tentative agreement with General Motors - 7/2  
+ Another agrees to Cuomo's pension fund reform - 7/2  
+ Poultry producers seek to delay trial - 7/2  
+ Hawaii governor vetoes online tax bill - 7/2  
+ Mich. AG opposes Blue Cross Blue Shield rate increase - 7/2  
+ Blumenthal: DPUC agrees to cuts - 7/2  
+ Arbitrator says Nebraska owes Kansas $10k for water usage - 7/2  
+ N.J. reaches settlement with seventh moving and storage company t... - 7/2  


IN THE SPOTLIGHT:
Monday, June 29, 2009
WASHNGTON (Legal Newsline) - The federal government plans to withhold nearly a half-million dollars the next time it doles out Medicaid funding to the State of West Virginia as a result of a settlement engineered by state Attorney General Darrell McGraw.
Read more...


+ The Libby verdict: Did the judge play favorites? - 6/2
+ Sotomayor can expect plenty of scrutiny - 5/26
+ The Libby verdict: Prosecutors make a fatal mistake - 5/21
+ California judge accuses asbestos firms of playing 'grisly games' - 5/5
+ GOP calls for outside counsel reform in wake of Rendell controversy - 4/23
BROWSE BY STATE:
 
BROWSE BY AG:
 
BROWSE BY DATE:
 
LATEST LNL BLOG ENTRIES:
+ Abbott: Beware Dietary Supplement Scams and 'Miracle' Health Claims
+ Abbott's signs of a scam
+ AG McCollum on convicts in the mortgage industry
NEWS WIDGET:
Attention bloggers:
Add Record Headlines to your site!


fast + free- click here

NEWS | CONTACT LEGALNEWSLINE | ABOUT US | ADVERTISE | RSS © 2008 LegalNewsLine.com. All Rights Reserved.