Illegal Payday Loan Companies in West Virginia
Illegal payday lending loans is a huge problem in the United States. The Attorney General, Darrell McGraw sued 8 companies in West Virginia for offering illegal payday loans over the Internet. This companies have been asked to hand over their records which detail the accounts of payday loan borrowers. There are many West Virginians who are in trouble of falling into a cycle of debt from irresponsible payday lending and companies who take advantage of these borrowers.
Payday loans are short term loans which are typically paid back within a period of two weeks with interest. The loan is secured by an electronic withdrawal agreement or a post dated check which will be deposited at the time of repayment. The difficult part about payday loans are the interest rates which can be extremely high like 800 percent. In West Virginia, payday lenders cannot charge initial payday borrowers more than 18 percent on a consumer loan.
The companies who were sued for their pitiful payday lending practices were targeting borrowers in Florida, Arizona, South Dakota, Delaware and in California. A thorough history of these payday lending companies show that they have an undeniable history of poor payday lending practices. To date, these companies have not been forthcoming and helpful in the current lawsuit facing them.
