Illegal Lending Schemes by Check ‘n Go, cash Mart Target Low-Income Borrowers With Interest Exceeding 400 Percent APR
SAN FRANCISCO BAY AREA (April 26, 2007) — City Attorney Dennis Herrera today filed suit against storefront financing institutions Check ‘n Go and cash Mart, as well as their online affiliates plus an associated out-of-state bank, for illegal, unjust and fraudulent company methods stemming from their advertising of short-term installment loans at illegal interest levels to low-income borrowers. In addition to test ‘n Go, cash Mart and its particular affiliates, 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.
Check ‘n Go and cash Mart are licensed deferred deposit loan providers, providing “payday loans” by which a debtor provides the loan provider a post-dated sign in trade for money.