Hundreds to Benefit From Payday Loan Settlement

News Categories

Our Practice Areas

Hundreds to Benefit From Payday Loan Settlement

Kelly Guzzo in partnership with the Virginia Poverty Law Center is excited to announce that over 800 low-income Virginians will have judgments vacated and dismissed from a settlement challenging the lending practices of a local lender. Kelly Guzzo waived our attorneys’ fees and costs in order to negotiate an assignment of all judgments to the Virginia Poverty Law Center.

Article Written by Jeremy Lazarus

“Hundreds of low-income Richmond area residents will benefit from the settlement of a lawsuit challenging the lending practices of Advance ‘Til Payday, a company that charges up to 960 percent interest on loans of $100 to $300.

The settlement will result in the dismissal of at least 50 garnishment actions and 800 judgments that Advance ‘Til Payday had obtained in court against borrowers who defaulted on the loans, according to Jay Speer of the Virginia Poverty Law Center, which brought the suit.

“That’s the most important result,” said Mr. Speer, who teamed with Kristi Kelly Guzzo of the law firm of Kelly Guzzo of Fairfax.

“I think this is the first time that a company has agreed to turn over its judgments in a case like this,” he said.

He said the dismissal of the judgments could help improve the credit ratings of those involved.