The Virginian-Pilot
©
RICHMOND
Attorney General Ken Cuccinelli filed a lawsuit in Richmond Circuit Court Tuesday against CNC Financial Services, Inc. doing business as Cash-N-A-Flash, a Hampton-based auto “title lender,” for charging interest rates of 300 percent or more on its loans in violation of Virginia’s Consumer Finance Act.
According to a news release from the attorney general’s office, the alleged violations occurred from March 2005 to the present. Statutory limits are set at 12 percent annually and Cash-N-A-Flash did not come within any of the exemptions to the Consumer Finance Act.
The current law allows one exemption allowing a lender generally to offer open-end credit and charge finance charges and other fees at an agreed-upon rate, as long as the lender provides the borrower with a minimum 25-day grace period to repay his loan in full before incurring a finance charge, the news release said.
Cash-N-A-Flash structured its title loans at various times as closed-end credit and/or did not provide the required finance charge grace period on initial advances or on subsequent balances where the borrower had a zero balance, the news release said.
The suit filed Tuesday requests that the court declare all loans made in violation of the Consumer Finance Act null and void and grant judgment for the benefit of borrowers in an amount equal to all principal and interest collected on all such loans.
Since June 2007 the attorney general’s office has negotiated six settlements with eight automobile title lenders, the news release said. The settlements meant about $461,000 in refunds to more than 2,650 borrowers, $1.98 million in forborne deficiency collection from nearly 3,000 defaulting borrowers who had their vehicles repossessed and about $5.19 million in forborne interest and/or principal collection from 9,800 borrowers.
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He's still a charlatan.
He's still a charlatan.
I really like this guy
Man he is going after things like no one I can recall in decades. he's my choice as future Governor of Virgnia and/or U.S. Attorney General.
As I said earlier in the
As I said earlier in the article concerning the UVA issue, most of the attacks against him are partisan. The detractors should stop with the attacks(even when he does something right) and let him hang himself. If he is so bad he will do the work for you. No one takes the bashing seriously. Any republican, conservative, ect., could say the sky is blue and many of you would debate the shade. Keep you eye on the goal folks.
Its about time
He started doing HIS job and not chasing idiolgical red herrings.
This is where the attention of AG needs to be
Good
It's About Time
Finally doing what he's paid to do.
Cooci does something right for a change
Nice to see Cooci going after the bad guys instead of legitimate scientists or people trying to help the sick. Even a blind pig finds an acorn if he roots around enough.
Don't be suckered
Don't be suckered by government saying what they're trying to do is actually what they're trying to do.
Equivalencies
This was a good thing. Maybe he can actually do what he was elected to do. But, as they used to say in the good ol' US of N, "One Oh S--- can wipe out ten Attaboys".
whats really sad
Maybe the borrowers should have went to their bank and took out the loan. Oh thats right, they have bad credit and the bank wont lend to them. So they AGREED to the terms of the loan, and now the government wants to get the principal and interest paid to the company returned. If it is a bad loan, just say no. If you agree to the terms you should be bound to the contract. There has to be some sort of financial insurance for loaning money to people who regularly dont pay their bills. That is why they have to charge higher interest rates.