The United States District Court for the Eastern District of Virginia recently granted preliminary approval of a class action settlement led by Kelly Guzzo that will grant $489 million in financial relief to consumers who took out high-interest loans. The loans were originated by Golden Valley Lending, Mountain Summit Financial, Silver Cloud Financial, and Majestic Lake Financial. The settlement terms include creation of a $39 million dollar fund to repay borrowers for amounts they repaid on illegal loans, as well as cancellation of $450 million in debt originated by the lending entities.
This settlement was achieved after three years of litigation led by the attorneys at Kelly Guzzo, who sued certain tribal officials and some of their business partners for creating, developing, and aiding the usurious lending scheme that offered illegal loans with unconscionable interest rates often exceeding 900 percent. At various stages of the litigation, the firm successfully argued that state usury laws applied to the loans—despite the defendants’ claim that the loans were governed by the laws of the tribe.
If you are a member of the class, please contact us if you have any questions relating to any terms of the settlement. Additionally, Kelly Guzzo continues to investigate and litigate similar matters against other high-interest lenders. If you have obtained a high-interest or payday loan, we will review the terms at no cost to determine if it complies with your state’s laws and whether we can obtain relief on your behalf.