LAWSUITS NEWS & LEGAL INFORMATION
Payday Loans
Denver, CO: (Mar-13-08) Colorado Attorney General John Suthers' office brought a lawsuit against Sonic Cash LLC, an Internet lender, alleging that it charged illegally high fees in nearly 2,300 payday loans made to Colorado consumers. The suit was brought as an effort to target Internet payday lenders who over charge fees for loans or aren't properly licensed. Suthers' office had asked 15 companies to halt online lending in Colorado in recent months, four of which have agreed to comply. Those who haven't agreed, face the threat of a lawsuit.
Sources at the AG's office stated that the Colorado Legislature has been considering House Bill 1310, which would impose a cap on payday-lending interest of 45% per year. Currently, payday lenders can charge several times the original balance of the loan in interest per year. As part of a settlement reached between the two parties, Sonic Cash agreed to resolve the allegations by agreeing to refund more than $150,000 in finance charges on nearly 2,300 payday loans made to Colorado consumers. Suthers said that by May 12, 2008, about 180 Colorado customers should receive finance charge refunds. Records state that Sonic Cash now has applied for a lender's license for a new Colorado division. Suthers said he expects that license to be issued once the finance-charge refunds agreed to in the settlement are paid. [DENVER BUSINESS JOURNAL: PAYDAY LENDER SONIC CASH TO REFUND $150,000 TO COLORADANS]
Published on Mar-15-08
Sources at the AG's office stated that the Colorado Legislature has been considering House Bill 1310, which would impose a cap on payday-lending interest of 45% per year. Currently, payday lenders can charge several times the original balance of the loan in interest per year. As part of a settlement reached between the two parties, Sonic Cash agreed to resolve the allegations by agreeing to refund more than $150,000 in finance charges on nearly 2,300 payday loans made to Colorado consumers. Suthers said that by May 12, 2008, about 180 Colorado customers should receive finance charge refunds. Records state that Sonic Cash now has applied for a lender's license for a new Colorado division. Suthers said he expects that license to be issued once the finance-charge refunds agreed to in the settlement are paid. [
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