AG reaches settlement with Beach lender

VIRGINIA BEACH

Virginia Attorney General Ken Cuccinelli announced Friday that his office has reached a settlement with a Virginia Beach auto-title lender accused of charging excessive interest rates on consumer loans.

The agreement, filed in Richmond Circuit Court, calls for Jerry W. Thornton Sr. of Jerry's Loan Center to refund and return titles to certain customers, according to a news release from Cuccinelli's office.

From January 2006 through October 2009, Jerry's Loan Center charged some borrowers interest rates that were higher than Virginia's legal limit, according to the release.

State law does not allow unlicensed lenders to charge and receive interest rates of more than 12 percent on consumer loans, according to the release.

The customers' loans were secured by their vehicle titles.

Thornton was charging consumers 30 percent interest per month, which amounted to 365 percent per year, said Brian Gottstein, a spokesman for the attorney general's office.

As part of the settlement, the company has agreed not to:

n Collect nearly $40,000 from 31 borrowers who defaulted on their loans and had their cars repossessed. The company will also not pursue an additional $27,000 from borrowers who defaulted on their loans, but whose cars have not been repossessed.

n Collect more than $17,000 from borrowers who are current.

n Repossess any cars belonging to people who got loans during the time period.

n Charge more than 12 percent on consumer loans going forward.

Thornton did not return a message left at the business Friday afternoon.

The business has locations at 1336-A Kempsville Road, 917 Level Green Blvd., and 1501 Lynnhaven P kw y.

For questions about the settlement, contact Jerry's Loan Center at (757) 467-3883.

Jen McCaffery, (757) 222-5119, jen.mccaffery@pilotonline.com