Payday and Online Loans
Payday and other online lenders often charge illegal interest rates and prey on consumers in desperate financial situations. With their sky-high interest rates and restrictive contract terms, many high-interest borrowers soon realize they are stuck in the online payday lending trap. If you are one such borrower, we may be able to help. Many states, including Virginia, Maryland, and Hawai‘i, have laws that protect borrowers from high-interest loans. For example, Virginia law prohibits most lenders from charging or receiving interest on a loan at a rate that exceeds 12 percent per year unless the lender is licensed. Additionally, licensed lenders may only charge up to 36% interest. Despite these clear restrictions, lenders continue to make high-interest loans with rates that violate state laws.
Our attorneys have extensive experience litigating cases against companies who make predatory high-interest loans to consumers, especially online lending companies. Our cases have resulted in some of the largest settlements in the nation to-date with online lenders. For example, our firm obtained a $15 million dollar class action settlement for Virginia consumers arising from a lending scheme involving CashCall and Western Sky. See Hayes v. Delbert Servs. Corp., 3:14-cv-00258-JAG, Dkt. No. 193 at 9-12 (Jan. 20, 2017).
If you find yourself trapped in a high interest loan, please call us, and one of our attorneys will meet with you at no charge to discuss whether your loan terms are legal. If we take your case, we will handle it on a contingency basis, and you will not be required to pay our attorney’s fees unless we settle your case or obtain a judgment on your behalf.
What if my state’s laws do not apply to the loan?
Payday and online lenders often claim that certain state and federal laws do not apply to them or the loans they make. However, this may not be true. Many payday and online lenders inaccurately claim that they are not subject to certain laws in an effort to avoid liability for their violations of state and federal law. Some lenders falsely claim that they are only subject to the laws of a foreign country or a Native American tribe. If you have taken out a high interest loan, we may be able to help you regardless of any claims your lender makes regarding the applicability of state and federal lending laws.
Are you unable to stop payments on your online loan?
Payday and online lenders usually require borrowers to authorize withdrawals from their bank account as part of the loan application. Although stopping the withdrawals should be as easy as authorizing them, some abusive lenders will continue to withdraw funds from an account even after a borrower has revoked authorization. Our attorneys have assisted clients who were the subject of such abusive collection practices by payday and online lenders.