Payday Lender Repays Up To $ 7.5 Million For Alleged Illegal Lending Practices – NBC Los Angeles

If you borrowed money from Money Mart or Loan Mart payday lenders between 2005 and 2007 – perhaps paying up to 400% interest – you may be eligible to get most of your money back.

With the settlement of a consumer protection lawsuit filed by the City of San Francisco, California victims of alleged illegal lending practices by the lender are entitled to compensation between $ 20 and $ 1,800.

Claim forms must be mailed no later than October 1. The paychecks will be sent out early next year.

At a press conference Tuesday outside a branch of the Hollywood Money Mart, Los Angeles City Councilor Eric Garcetti and San Francisco City Attorney Dennis Herrera urged “loan shark” eligible customers to apply. to get their money back.

“I want this money to go to the people who are entitled to it. I want the money to go to those who have been the victims of the unscrupulous actions of one of the largest payday lenders in the country,” Herrera said.

Up to $ 7.5 million is available for tens of thousands of payday loan customers who can prove they have been victimized by lenders, he said. The average reimbursement amount will be $ 570, according to documents posted on the San Francisco City Attorney’s Office website.

Herrera said he has carried out outreach activities in California cities with a high concentration of people using payday loan services: San Francisco, Fresno, Sacramento and now Los Angeles.

LA mayoral candidate Garcetti praised Herrera and the colony.

“Businesses shouldn’t defraud their customers. But that’s what happens too often with payday lenders like Loan Mart and Money Mart,” Garcetti said. “These payday lenders are already digging people into an even deeper hole.”

The couple said they were stepping up their awareness as claim forms during the 90-day claims period were due to be filed soon.

A claim form is available on the city attorney’s website. Further information can be obtained by calling the Money Mart Settlement Helpline at 866-497-5497 or by sending an email to [email protected]

“There is money for Angelenos and we want to make sure you get it,” Garcetti said.

There are 32 branches of Money Mart and Loan Mart in the greater Los Angeles area, Garcetti noted.

Herrera’s lawsuit, filed in 2007, alleged that Money Mart was offering “CustomCash” loans to customers at interest rates above the 36% limit imposed by California law.

Some customers were paying rates as high as 400%, keeping them in a vicious cycle of borrowing, Herrera said.

“We know that for the unlucky, often struggling families or working class families struggling from salary to salary, $ 1,800 can make a big difference in their bottom line.” , he added.

Money Mart has denied the claims in the lawsuit, saying it is settling the claims to avoid the uncertain outcome of the litigation.

The company has put an end to the alleged illegal lending practices, Herrera said. A Delaware bank that was the lender of the loans, First Bank of Delaware, went bankrupt, he said.

Eligible California customers are:

  • those who obtained a “CustomCash” loan between September 2005 and April 2007, and / or
  • they obtained a “Cash ’til Payday” loan between January 2005 and July 2005 at a Money Mart store in California.

Dollar Financial Group, the parent company of Money Mart and Loan Mart, has also been the target of the lawsuit.

Money Mart has locations in the Bay Area, the wider Los Angeles and Inland Empire area, the Sacramento area and in the Central Valley.

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