Customers of Check 'n Go Payday Lender May be Eligible for Refund
Eligible Consumers must Apply for Class Action Settlement Before March 28
Former California customers of the payday lender "Check 'n Go" may be entitled to significant repayments for the interest, fees, and finance charges they paid on their loans. The refund program, which will end on March 28, 2013, is among the terms of an agreement negotiated with the payday lender in June to settle litigation filed by the San Francisco City Attorney's Consumer Protection Unit on behalf of state consumers. Check 'n Go has agreed to commit up to $4.3 million toward restitution as part of that settlement, with refunds expected to range from $20 to more than $4,600 for each eligible claimant.
San Francisco's 2007 civil action alleged that the Cincinnati-based Check 'n Go engaged in an illicit "rent-a-bank" scheme aimed at skirting California's maximum allowable annual interest rate of no more than 36 percent for this type of loan. According to records obtained before and during the course of the litigation, Check 'n Go made online installment loans to California consumers with interest rates as high as 400 percent - far in excess of what state law allows - as late as June 2008.
Former Check 'n Go customers may qualify for restitution if they obtained a four-month installment loan online between Nov. 2006 and June 2008 through the websites: checkngo.com, ilp.fbdel.com and commandloans.com. To be eligible for repayment, borrowers must mail a claim form and a copy of the required form of identification to the settlement administrator, postmarked by March 28, 2013.
Potential claimants should visit, email or call for more information:
(Toll Free) 1-855-581-2350
The litigation involving the Check 'n Go loan settlement is: People of the State of California ex rel. Dennis Herrera v. Check N' Go of California, Inc., et al. (San Francisco Superior Court Case No. CGC-07-462779).
Courtesy of the Senate Majority Caucus