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Herrera Sues Storefront ‘Payday Lenders’ for Prohibited Company Methods, Deceptive Advertising

Prohibited Lending Schemes by Check ‘n Go, money Mart Target Low-Income Borrowers With Interest Exceeding 400 Percent APR

BAY AREA (April 26, 2007) — City Attorney Dennis Herrera today filed suit against storefront funding institutions Check ‘n Go and cash Mart, with their online affiliates as well as an associated out-of-state bank, for unlawful, unjust and fraudulent business practices stemming from their marketing of short-term installment loans at unlawful interest levels to low-income borrowers. In addition to check ‘n Go, money Mart and its affiliates, the lawsuit names Wilmington, Del. -based very first Bank of Delaware (OTC: FBOD) to be a defendant for aiding and abetting the storefront businesses’ illicit funding schemes.

Check ‘n Go and Money Mart are licensed deposit that is deferred providers, providing “payday loans” through which a debtor provides financial institution a post-dated register trade for cash. online installment loans Texas no credit check Payday loan are usually seemed for by low-income and class that is working paycheck that is residing paycheck. Along side these payday improvements, nevertheless, Check ‘n Go illegally provides installment that is short-term for major quantities up to $1,500 — with annual part costs surpassing 400 percent — through debateable arrangements with on the web affiliates and First Bank of Delaware, which Herrera expenses are deliberate efforts to circumvent state legislation.