Colorado Attorney General Reaches Settlement with Payday Loan Company
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UPDATED: Apr 4, 2013
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Two payday loan companies have just reached a settlement with the Attorney General of Colorado.
EZPawn and EZMoney were originally found guilty of overcharging payday loan borrowers, so both agreed to refund customers who were overcharged. However, the Uniform Consumer Credit Code Administrator, who operates within the Attorney General’s Office, found that both companies were improperly refunding the payday loan victims.
Since neither company complied with the request, the Attorney General was prompted to take direct action. The settlement is the result of disciplinary hearings against the two payday loan companies.
EZPawn and EZMoney both agreed to a settlement with Colorado Attorney General John W. Suthers that will require them to refund consumers $400,000 in direct checks, while also paying the state a $24,000 penalty within 60 days of the settlement.
Carolyn A. Tyler, Public Information Officer and Communications Director for Attorney General John W. Suthers, told loans.org that 24,000 Colorado consumers will be receiving refunds.
She also said that even though other payday loan companies have fallen into the sights of the Attorney General in the past, there have not been any enforcement actions of late until now.
While EZPawn and EZMoney may potentially not meet the 60 day repayment period, Tyler suspects the situation will end well.
“We’re optimistic that the company will comply with the terms,” she said.
Tyler noted that this is the first time that the Attorney General has announced any enforcement action for EZMoney and EZPawn.
While Attorney General Suthers will continue to focus on all aspects of legal compliance, Tyler said that Suthers and other state regulators “will continue to perform their duties as always” and not make payday loan lending their sole focus in 2013 in light of this one situation.
A complete list of licensed Colorado payday loan lenders is available for viewing at the Uniform Consumer Credit Code.