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Uploaded: Friday, December 28, 2012, 8:08 AM
Updated: Tuesday, January 1, 2013, 7:46 AM
Those who paid high interest rates for 'payday' loans eligible for repayments
Cincinnati-based Check 'n Go agrees to pay $4.3 million in refunds
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California residents who paid exorbitant interest rates for online installation loans may be eligible for repayment over the next three months
in a refund drive announced Thursday by San Francisco City Attorney Dennis Herrera.
Consumers who dealt with Cincinnati-based Check 'n Go are eligible for restitution under a June settlement with Herrera's office in which the payday loan company agreed to pay $4.3 million in refunds.
Herrera said Check 'n Go partnered with an out-of-state bank in an illicit scheme to skirt California's maximum interest rate of 36 percent for the payday loans and made loans with interest rates as high as 400 percent.
Herrera said there are thousands of victims statewide, many who are "the working poor, who are living paycheck to paycheck."
Because of the exorbitant rates, "people could never get their principal paid down ... and the number continued to grow," he said.
The city attorney's office is coordinating a statewide outreach effort to notify customers who are eligible for refunds, which must be claimed during a three-month period between today and March 28.
Herrera said San Francisco has one of California's highest density of payday loan companies and that he will be traveling to other hot spots around the state, including Los Angeles and the Central Valley.
A refund drive earlier this year for a similar settlement with the payday lender Money Mart/Loan Mart netted more than 8,100 claimants who received an average of nearly $700.
As part of that outreach, Herrera's office created a video with the popular song "Call Me Maybe" to encourage claimants to come forward, and he did not rule out similar efforts in this case.
"However we need to get the word out, we're going to do it," Herrera said.
"That was very successful in what it was intended to do," he said, noting his office received a spike in claimants after the video's release.
Check 'n Go claimants may qualify for restitution if they received an online four-month installation loan between November 2006 and June 2008 through the websites www.checkngo.com, www.ilp.fbdel.com or www.commandloans.com.
The refunds will range from $20 to $4,675, depending on the size of the payment by the claimant.
People are encouraged to visit www.caloanrefund.org, email caloanrefund@sfgov.org or call toll-free to (855) 581-2350 for more
information about how to make a claim.— Bay City News Service Are you receiving Express, our free daily e-mail edition? See a sample and sign-up for Express.
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Posted by tommy, a resident of the Bonde Ranch neighborhood, on Dec 29, 2012 at 5:13 am Payday loan companies do not treat anyone with respect when they can't repay on time, they're only good to them at the point of entry and when they then offer them more and more loans before they've demonstrated their ability to repay loan 1. If people succumb to temptation and over-borrow, that's when the respectfultreatment ends and the harassment begins. At our Credit Union, we have seen many instances of appalling practice by every payday lender on the market so I do not believe there are any ethical payday lenders in existence, based on experience of the dreadful treatment received by the people we've helped. CFA is a representative of and apologist for these sharks and should not be viewed as an independent party. As a Credit Union, we also have an interest but ours is a non-profit motivated desire to help members of the community take control of their finances and steer clear of profiteering usurers such as payday lenders.
Web Link
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Posted by Pure Cash Loans, a resident of the Birdland neighborhood, on Dec 29, 2012 at 5:39 am Many people blame the payday lender for their woes but the borrower also holds some blame. The borrower should know at the time of their application if they can repay the loans to the terms that they agree to. If they can’t, it is not the lender’s faults. If you can’t repay, then don’t take the loan and stop blaming the lender. The only time to really blame a payday loan lender is in situations like described here – when the lender tries to get around the state’s laws just to take advantage of people. Payday loans have a place in this economy, we just have to educate the borrower a little better to ensure that they keep themselves out of a ongoing debt spiral.
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Posted by Ray Grabb, a resident of the Another Pleasanton neighborhood neighborhood, on Jan 10, 2013 at 2:22 pm we've used cashloancity.com quite a few times now and it's never been a problem.. I think when the borrower defaults or extends the loan it's more of an issue, but if you get one just pay the thing back
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Posted by Melisa, a resident of the California Reflections neighborhood, on Feb 22, 2013 at 1:35 am That’s the good news. Most of people who apply to payday loan lenders have low or middle income so for them the opportunity to get a repayment is very important. But in any case, I think consumers should be more cautious when they are going to apply for payday loans. It’s important to get to know the interest rate beforehand, it shouldn’t be a surprise. You should know for sure how much a loan will really cost if it’s okay for you or not. Consider different options, taking out a payday loan is not the only way to get financial assistance. If a loan has an extremely high interest rate and you afraid that it will be hard to repay it then better choose another option and avoid such a financial risk.
Melisa from Web Link
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Posted by gloria swenson, a resident of the Another Pleasanton neighborhood neighborhood, on Feb 22, 2013 at 8:19 am I realize as a borrower I'm completely to blame. I should have been able to anticipate my unanticipated car breakdown, my husband getting laid off from his job, and cutbacks of hours at my own workplace. Unable to pay back immediately, I've now paid over $12,000.00 on a $700.00 loan for unanticipated dental work. But it is my fault. After all, Payday is like any other company in the private sector: it is very ethical and is not in it for the buck. When I've been unable to repay my loan - though I've now paid a total of $12,000.00 and still owe another $4000.00 - the people at Payday have been very sympathetic and understanding as they've extended the terms of the loan and added interest upon interest, fees upon fees.
The last thing we need is the Nanny state coming in and regulating companies like Payday. I needed that $700.00 and Payday deserves to get that $16+ thousand in return for their trouble. Besides, it's all my fault. I shouldn't have gotten that dental work. I should've known my Sebring was going to drop its engine with 87,000 miles on it. And my husband and I should've known the economy would take a downturn and we'd face setbacks at our jobs.
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