On December 18, 2015, the Virginia Attorney General announced a $4 million settlement with a Delaware-based online payday lender. The Attorney General had alleged that the lender violated the state’s consumer finance statutes by imposing illegal charges on consumers who received open-ended loans, and violated the Virginia Consumer Protection Act (VCPA) by misrepresenting its licensure status and that its loans complied with Virginia’s open-ended credit statute. According to the press release, the settlement will provide more than $4 million in forgiven interest and fees to over 5,000 consumers, and $18,000 in restitution to another 170 consumers who paid back their loans. Virginia will also receive $30,000 in reimbursement for its legal fees. Finally, the payday lender will be permanently enjoined from violating the VCPA or the Virginia consumer finance statutes, according the press release.
The post Virginia Attorney General Announces $4 Million Settlement with Payday Lender appeared first on Consumer Finance Insights (CFI).