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Loan MaxRichmond, VA: (Jun-11-07) The State Attorney General Bob McDonnell's office brought charges against Loan Max, a consumer loan company, alleging that it was guilty of violating Virginia's Consumer Finance Act. Loan Max, a company with 36 locations in Virginia, makes loans to consumers in amounts generally below $2,500. The loans are secured by a motor vehicle title, which is left with Loan Max. The suit claimed that from October 2004 through November 2005, Loan Max typically charged its borrowers loan fees and interest rates higher than allowed by state law.
In a settlement reached, Loan Max has agreed to refund more than $206,000 to nearly 1,800 borrowers. Further, as part of the settlement agreement, the company agreed not to collect deficiency amounts owed by almost 12,000 Virginia borrowers who obtained loans and later defaulted on those loans. It will pay attorneys fees and $50,000 that the AG's office will distribute to nonprofit credit counseling agencies in Virginia. [WDBJ NEWS: LOAN MAX]
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Last updated on Jun-12-07
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I got a $1,200.00 loan on my car and did not understand the interest rate. I saw 300% but did not know exactly what that meant. Now we have gotten to the point where the payments are so high we can't get caught up. They are threatening to take the car. I as well as them should have realized that I did not earn enough to make the payments, but they did not even ask how much we made. Can they charge that much interest?
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