Trouble for Unlicensed Payday Lenders in MO
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UPDATED: Dec 5, 2011
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Payday Loan Yes, Fast Cash Advance, and Nationwide Cash Inc., all had suits filed against them at the end of November by Missouri’s Attorney General, Chris Koster.
These three payday companies belong to two parent companies: Global Payday Loan LLC and Ambassador Financial Services Inc.
These payday lenders have failed to register with the Missouri Secretary of State and the Missouri Division of Finance, yet have been still lending money to Missouri borrowers.
Missouri law monitors payday lenders and makes them adhere to strict guidelines, such as interest rate caps, fee caps, and limits on how often a consumer can roll over a payday loan. Without registering with the Division of Finance, however, the state cannot successfully monitor the practices of the lenders.
“Requiring payday lenders to register with the Missouri Division of Finance will help ensure these lenders are complying with the laws and regulations of the state of Missouri,” said Koster, according to the press release on the Missouri Attorney General’s website.
Koster is seeking to issue and immediate halt in issuing of loans to the payday lenders in question until they have properly registered with the state and obtained appropriate licenses for lending in the state of Missouri. Koster is also seeking to have all origination fees, late fees, and interest the companies have gained to be issued back to the consumers who used their services.
None of the websites of the payday lenders in question are prohibiting loans to Missouri yet.
The Attorney General is asking anyone who has borrowed from one of these lenders to contact his office’s consumer hotline at 1-800-393-8222, or file a consumer complaint on his official website.