Former Allied Cash Advance borrowers will begin receiving settlement payments


[ad_1]

judicial law
(© Tiko – stock.adobe.com)

Borrowers harmed by Allied Title Lending’s lending practices, doing business as Allied Cash Advance, will begin receiving checks for amounts between $20 and $491.40 as part of a settlement brokered by Attorney General Mark Herring.

In March 2021, secure herring a permanent injunction against Allied, $850,000 in restitution for clients and an additional $150,000 in attorneys’ fees and costs.

“The resolution that my team and I were able to achieve with Allied provides meaningful restitution and debt forgiveness to tens of thousands of Virginia consumers,” Herring said. “Before Virginia’s consumer credit laws changed earlier this year, many lenders turned to open credit lending to charge astronomical interest rates on small dollar loans to financially vulnerable Virginians. I am also pleased that my team and I were able to resolve our claims against Allied in a manner that provides meaningful restitution and debt relief to tens of thousands of Virginia consumers.

In his complaint, Herring alleged that Allied violated Virginia’s consumer credit law in two ways:

Allied imposed a $100 origination fee on its loans after providing the loan funds in violation of the requirement that lenders of open-ended credit plans provide a minimum 25-day grace period before imposing financial costs.

Allied has committed to a quasi-payday lending model by encouraging and allowing borrowers to enter into new contracts each month, essentially rolling over the same loan for months and sometimes years.

The Commonwealth provides checks to consumers most affected by Allied’s wrongful conduct. This includes those who repaid their loans during the grace period and paid the $100 origination fee, and those who were subject to quasi-payday loan conduct and paid off many accounts during the grace period.

Consumers who paid an account during the grace period will receive $20. Consumers who have paid for two accounts will receive $25. All other consumers receiving refunds will receive $9.45 for each account they paid during the grace period. For example, a consumer who has paid for three accounts will receive $28.35 and a consumer who has paid for 52 accounts will receive $491.40.

The settlement also included consumer relief in the form of debt forgiveness. Under the settlement, Allied has finally agreed to stop collecting on any open accounts opened during the period between September 23, 2013 and July 23, 2017. The total value of the debt forgiveness granted on these accounts exceeds $21.7 million.

Herring has hired a settlement claims administrator to distribute restitution monies to affected consumers. Any consumer who believes they are eligible for a refund, but does not receive a refund letter or check, may contact the Settlement Administrator at the following toll-free number to inquire about their eligibility and provide a more current address: ( 833) 531-8941.

Consumers who have questions about the Settlement, the Settlement administration process, and who is eligible for a refund may also visit the Frequently asked questions posted on Attorney General Herring’s website.

Allied operated at various times at 23 sites in the following Virginia locations: Alexandria, Charlottesville, Fredericksburg, Hampton, Harrisonburg, Highland Springs, Lynchburg, Manassas, Mechanicsville, Newport News, Norfolk, Portsmouth, Richmond, Rocky Mount, Staunton, Tappahannock , and Winchester.

augusta free press
augusta free press

[ad_2]

Martha J. Finley