Cuccinelli office sues internet lender over 1300% interest

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Richmond, VirginiaAttorney General Ken Cuccinelli today announced that he has filed a lawsuit against Jupiter Funding Group, LLC, an internet lender, alleging that it was granting illegal payday loans to consumers in Virginia without having a valid payday loan license from the state.

The Virginia State Corporation Commission (SCC) requires every payday loan lender to obtain a license before doing business in Virginia. Without a license, lenders cannot charge more than 12% annual interest on a loan. Under Jupiter Funding’s terms and conditions, the interest rates on its payday loans ranged from 438% per annum for a 25-day loan to 1,369% per annum for an eight-day loan.

The lawsuit alleges that Jupiter Funding provided loans to consumers in Virginia through its website, http://www.directpaydayfunds.com, from January 13, 2010 to the present day without a license. Jupiter Funding’s activity appears to be carried out exclusively via the Internet. Consumers are encouraged to apply for loans through the company’s website, and once loan applications are approved, Jupiter transfers the funds directly to consumers’ bank accounts. As part of the application process, consumers are required to authorize Jupiter to also debit loan payments directly from their bank accounts.

“Jupiter Funding has attacked consumers in Virginia by providing high-interest loans over the Internet without any regulatory oversight. My office will continue to aggressively prosecute those who violate Virginia’s consumer loan laws, ”Cuccinelli said.

Payday loan laws in Virginia generally define a “payday loan” as a small, short-term loan against the security of a check, an assignment of interest on a bank account, or an assignment of income payable to a bank account. particular. Violations of payday loan laws also violate the Virginia Consumer Protection Act (VCPA).

Cuccinelli’s office has filed a lawsuit in Arlington County Circuit Court, asking the court to prevent Jupiter Funding from violating payday loan laws and the VCPA, as well as charging interest on the limit. 12% legal value of Virginia when unlicensed. do this. The lawsuit also asks the consumer for reimbursement of certain interest paid and civil penalties in the amount of $ 2,500 for each violation of the VCPA.

Although Jupiter Funding lists a Delaware address as its primary address on its website, the attorney general’s office believes the company’s operations are in fact based in the Kansas City area.

Deputy Attorney General Mark Kubiak and Senior Deputy Attorney General Dave Irvin are representing the Commonwealth in this case.

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