Soldier sues title lender, claiming abusive practices
Staff Sgt. Jason Cox claims in the lawsuit he borrowed $3,000 from Alabama Title Loans against the title of his 2002 Dodge Durango. The lender, a subsidiary of Atlanta-based Community Loans of America, charged him an interest rate three times that allowed by the Military Lending Act, the suit contends.
The loan rolled over several times, and the debt quickly escalated to $4,500 over several months. Cox was unable to keep up payments, and the sport utility vehicle was repossessed in August from base housing on the Columbus-area Army post.
The suit, which was filed on Veterans Day in U.S. District Court in Columbus, seeks class action status.
Robert Reich, president and chief executive of Community Loans of America, said he had not read the suit and declined to comment, citing the pending litigation.
Cox’s attorneys include former Georgia Gov. Roy Barnes, who during his term as governor, cracked down on abusive practices by payday lenders and championed a law he later signed that also curbed abusive mortgage practices.
“We think that the practice of noncompliance with the Military Lending Act is widespread,” Barnes said in an interview. He called the alleged abuse among “the most egregious violations that I have seen.”
The Military Lending Act was enacted in 2007, after a report by the Department of Defense found that 17 percent of service members used payday loans and that “predatory lending undermines military readiness, harms the morale of troops and their families, and adds to the cost of fielding an all-volunteer fighting force.”
The act, among other things, caps the annual percentage rate on a loan to armed service members at 36 percent.
The suit claims Cox was changed an APR of more than 100 percent. Loans made in violation of the Military Lending Act are void from the start, the suit says.
The suit claims Cox provided the lender a military ID and he was not informed of his rights under the law.
payday loan georgia - News
Georgia made payday lending a felony subject to racketeering charges for non-bank payday lenders, but Guaranty Bank offers a similar loan in that state. In Ohio, where voters enacted a payday loan interest rate cap of 28 percent, Fifth Third Bank's
Seventeen states and the US military have effectively banned payday loans, which attract low-income borrowers who need a cash advance on paychecks. Georgia has declared payday lending to be felony racketeering. But in California, payday storefronts
The Military Lending Act was enacted in 2007, after a report by the Department of Defense found that 17 percent of service members used payday loans and that “predatory lending undermines military readiness, harms the morale of troops and their
•Employees in the debt collection department of loan company Payday Financial in Timber Lake, SD, instructed employers to garnish wages, claiming falsely that it can be done without a court order, according to an FTC complaint filed in September.
Maybe the guy wants in on some of Newt's Freddie Mac lobby payday. Its up to $1.6 million now. My gosh! The mans not running for office, Drooly. He is only endorsing Gingrich. The fact he lost his race means nothing. I don't think anyone is going to
No Fax Payday Loans In Georgia | whgreen.com
The ease of obtaining a no fax payday loans in Georgia led to the creation of a multibillion dollar payday money advance industry in the state, with hundreds of unlicensed fast money loan vendors opening shop. This led to extreme abuse of borrowers, in terms of hefty interest charges & other hidden costs & penalties imposed in cases of default in repayment. Finally, the State government had to intervene, in order to protect the consumers from lender exploitations in the net Georgia payday loan market.
State Lending Norms
Unlicensed money advance loan vendors cannot charge an interest of over 8% on a payday loan issued by them. Not only that, they cannot tie up with any out-of-state bank either, for evading the State lending acts! Further, the Federal Truth in Lending Act requires full disclosure of the net APR imposed on the borrowers by the lending company, at the time of giving out a payday money loan in the state of Georgia. This Act facilitates to save consumers from hidden costs on the loan. In addition, consumer grievance redressal systems have been put in place to handle user complaints.
Online money loan industry in the US is ruled by State Laws. Moreover, this state has imposed some strict measures of control on the local payday lending industry, in an hard work to safeguard consumer interests. Unlicensed payday lending is illegal in this state. In order to give a payday loan in the state, a lending company has to be licensed & registered with the local BBB.
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