Herrera Sues Storefront ‘Payday Lenders’ for Prohibited Business Methods, Deceptive Advertising

Prohibited Lending Schemes by Check ‘n Go, money Mart Target Low-Income Borrowers With Interest Exceeding 400 Percent APR

BAY AREA (April 26, 2007) — City Attorney Dennis Herrera today filed suit against storefront funding institutions Check ‘n Go and cash Mart, with their online affiliates plus an associated out-of-state bank, for unlawful, unjust and fraudulent business techniques stemming from their marketing of short-term installment loans at illegal interest levels to low-income borrowers. The lawsuit names Wilmington, Del. -based very first Bank of Delaware (OTC: FBOD) as being a defendant for aiding and abetting the storefront organizations’ illicit financing schemes in addition to test ‘n Go, cash Mart and its particular affiliates.

Check ‘n Go and cash Mart are licensed deferred deposit loan providers, providing “payday loans” through which a debtor provides loan company a post-dated register trade for the money. Payday loan are often appeared for by low-income and class that is working paycheck that is residing paycheck. Continue reading Herrera Sues Storefront ‘Payday Lenders’ for Prohibited Business Methods, Deceptive Advertising