December 9, 2021 – Former Allied Cash Advance Borrowers to Begin Receiving Settlement Payments
Commonwealth of Virginia Attorney General’s Office
202 North Ninth Street Richmond, Virginia 23219
For media inquiries only, contact:
Charlotte Gomer, Director of Communications
Call: (804) 786-1022
Mobile: (804) 512-2552
~ Checks in the range of $ 20 to $ 491.40, totaling $ 850,000 in total, will start arriving this week to over 12,300 former borrowers ~
RICHMOND – Attorney General Mark R. Herring today announced that over 12,300 borrowers who have been adversely affected by the indefinite credit practices of Allied Title Lending, LLC d / b / a Allied Cash Advance (“Allied”) will begin receiving checks from an amount between $ 20 and $ 491.40 as part of a settlement negotiated by the Attorney General herring. In March 2021, Attorney General herring secured a permanent injunction against Allied, $ 850,000 in restitution for clients and an additional $ 150,000 in legal fees and costs.
“The resolution my team and I were able to achieve with Allied provides meaningful restitution and debt relief to tens of thousands of consumers in Virginia.” noted Attorney General herring. âBefore Virginia’s consumer credit laws were changed earlier this year, many lenders were turning to open-ended loans to charge astronomically high interest rates on small dollar loans issued. to financially vulnerable Virginians. I am also delighted that my team and I were able to resolve our claims against Allied in a way that provides meaningful restitution and debt relief to tens of thousands of consumers in Virginia.
In his complaint, the Attorney General herring alleged that Allied violated Virginia consumer credit law in two ways: (1) Allied imposed a $ 100 origination fee on its loans after providing the loan funds in violation of the requirement that lenders of open-ended credit plans provide a grace period of at least 25 days before imposing finance charges; and (2) Allied has embarked on a quasi-payday loan model by encouraging and allowing borrowers to enter into new contracts each month, essentially renewing the same loan for months and sometimes years.
The Commonwealth provides checks to consumers who have been most affected by Allied’s misconduct. This includes those who paid off their loans during the grace period and paid the original $ 100 fee, and those who went through the practice of payday loans and paid off many accounts during the grace period. Consumers who paid an account during the grace period will receive $ 20. Consumers who have paid two accounts will receive $ 25. All other consumers who receive refunds will receive $ 9.45 for each account they paid during the grace period. For example, a consumer who paid three accounts will receive $ 28.35 and a consumer who paid 52 accounts will receive $ 491.40.
The settlement also included consumer relief in the form of debt relief. Under the settlement, Allied ultimately agreed to cease charging on any open accounts opened during the period between September 23, 2013 and July 23, 2017. The total value of debt forgiveness provided on these accounts exceeds $ 21.7 million.
Attorney General herring hired a claims administrator to distribute the refunds to affected consumers. Any consumer who believes he or she is eligible for the refund, but does not receive a refund letter and check, can contact the settlement administrator at the following toll-free number to inquire about his or her eligibility and provide a more current address: (833) 531-8941.
Consumers who have questions about the settlement, the settlement administration process, and who are eligible for compensation can also consult the Frequently asked questions posted about the Attorney General herring website.
Allied operated at various times at 23 locations in the following locations across Virginia: Alexandria, Charlottesville, Fredericksburg, Hampton, Harrisonburg, Highland Springs, Lynchburg, Manassas, Mechanicsville, Newport News, Norfolk, Portsmouth, Richmond, Rocky Mount, Staunton , Tappahannock, and Winchester.
This case was handled by the Attorney General’s Predatory Lending Unit herring Consumer Protection Section. The unit was established as part of the Attorney General herring the reorganization of its consumer protection section, which now focuses on predatory lending in addition to deceptive conduct, antitrust issues, charity canvassing, etc. During the attorney general herring administration, the Attorney General’s Consumer Protection Section has recovered approximately $ 410 million in consumer relief and offender payments.
For more information on the settlement or to file a complaint regarding a consumer protection issue, please contact the Attorney General herring Consumer Protection Section:
# # #