Consumer Finance Insights
December 18, 2015

Virginia Attorney General Announces $4 Million Settlement with Payday Lender

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.