West Virginia Orders Payday Lender to Alter Debt Collection Practices
By Jay Fleischman, New York Bankruptcy Lawyer on Mar 15, 2007 in General Bankruptcy Information
The West Virginia Attorney General fought to a payday loan company that tried to collect past-due payments in person, and this week announced a settlement agreement with four affiliates of the nation’s largest payday lender, Advance America, Cash Advance Centers, Inc. (“Advance America”) of Spartansburg, South Carolina. The companies agreed to cease engaging in these illegal debt collection practices.In the agreement, Advance America agreed to permanently discontinue its practice of contacting consumers in person at their homes in West Virginia, and its practice of leaving “door hangers” for consumers when they are not home when attempting to collect debts in West Virginia. Advance America also agreed to refrain from contacting third parties about alleged debts, including persons listed as “references” on loan applications.
Payday lending is not allowed by West Virginia law, forcing consumers to travel to surrounding states.
The complaints alleged that Advance America attempted to coerce payment by threatening to bring criminal charges, making unauthorized collection calls to various third parties, including persons listed as “references” on loan applications, and by making personal visits to consumers at their homes in West Virginia. The complaints were brought by consumers who had defaulted on loans.
Score one for the good guys!
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