Payday lenders forced to give up $ 12 million in loans

0

New York on Monday announced a settlement with two operators of payday lenders – barring them from working in the state and requiring them to cancel about 20,000 loans worth about $ 12 million.

Total Account Recovery (TAR), a payday loan debt collection agency, and E-Finance Call Center Support, a payday loan manager, had for years benefited from preying on late borrowers on high interest rate loans, some of which bore interest. rates as high as 25 percent, according to the state’s financial services department.

Payday loans are illegal in New York City and DFS will not tolerate predatory actors in our communities,” DFS Superintendent Maria Vullo said in a statement.

While payday loans are illegal in New York City, state residents can fall prey to predatory lending through out-of-state lenders trolling online.

Vullo called out E-Finance for making “illegal false statements” to New Yorkers when requesting payment and negotiating payment agreements.

Between 2011 and 2014, TAR succeeded in charging 2,119 defaulting borrowers. He collected a fee in each case, according to the DFS.

TAR, led by Jeremy Schaffer, and E-Finance, led by Joshua Mitchem, according to court documents, will pay a fine of $ 45,000 plus up to $ 15,000 to cover the cost of sending notices to consumers including loans have been canceled.

This is not the first time that TAR and E-Finance – and related entities – have come under fire.

The Post found 35 civil complaints filed in 15 states in which TAR and a predecessor, Total Recovery Solutions, have been listed as defendants in civil actions over the past six years.

Most of the complaints were made in states where payday loans are legal, but states called the entities for violations of the Fair Debt Collection Practices Act.

Attempts to reach lawyers for TAR and E-Finance were unsuccessful.

Share.

Comments are closed.