Kelly Guzzo, PLC was part of a team of lawyers who earned a key decision that will protect borrowers from exorbitant interest rates on loans.
Kelly Guzzo sued on behalf of consumers with loans issued in the names of Golden Valley Lending, Silver Cloud Financial, Mountain Summit Financial, and Majestic Lake Financial. These entities were charging borrowers triple-digit interest rates, which exceed the laws of almost every state. Virginia, for example, generally only allows a lender to charge a maximum of 12 percent interest.
The defendants in the case argued that the case should be dismissed because the loans are governed by tribal rather than state law. In a January 2021 decision, the federal district court in Richmond rejected this argument, finding that applying tribal law would allow the defendant lenders to “violate Virginia’s compelling public policy against the unregulated lending of usurious loans” and leave consumers holding these loans with “not only no usury protections but also comparatively little in remedies.” This decision is currently on appeal.
If you have a loan issued in the name of Golden Valley Lending or any of the other entities involved in this case, please contact our office for a free evaluation of your loan terms so that we can see if you are entitled to relief.