Category Archives: State Refunds

TitleMax Forced to Abandon its Title Loan Product

The Nevada Financial Institutions Division (NFID) issued an order requiring TitleMax to “immediately cease and desist offering its “Grace Period Payments Deferment Agreement (GPPDA)” title loan option and return all principal and interest collected under every GPPDA entered into after December 18, 2014. ”

The order directs  TitleMax to pay an administrative fine of $307,000 for breaking Nevada car title loan laws.

The Nevada complaint focused on TitleMax of Nevada, Inc. TitleMax offered an agreement entitled Grace Period Payments Deferment Agreement and cited a violation of NRS 604A.445 which allows for only two types of title loans: a 30-day loan, extendable for up to six additional 30 day periods and a 210-day loan that may not be extended.

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A judge upheld a previous ruling that “by entering into the GPPDA, TitleMax unlawfully extends the term of the loan beyond the initial 210-day term. Under the GPPDA, the customer receives an additional 210 days to pay off their title loan with the first seven payments going toward interest only and the second seven installments going toward principal only. While the interest rate remains the same as the initial loan agreement, the customer’s payments are no longer fully and ratably amortized as required by law. A customer who makes payments according to the GPPDA, will ultimately pay more money in interest than he or she would have paid under their initial loan agreement.”

Customers that have a GPPDA title loan agreement with TitleMax should reach out to their TitleMax branch with questions.

For strategies to get out of paying your payday loans and title loans, get my new book: “How to Kiss Your Payday Loan Lender Goodbye” available on Amazon.

Here’s a link to the TitleMax car title loan “Findings of Fact, Conlusions of Law, and the Order.

Vermont Payday Loan Laws and Refunds

Billing Tree, Inc., an Arizona company that processes electronic payments, will pay $178,000 to settle claims that the company violated Vermont consumer protection laws.

Vermont Payday Loan Laws and Refunds

Here’s a link to the Vermont Payday Loan Settlement: Vermont

Verify Vermont payday loan lenders having a license here: Vermont Payday Loan Licensees

To file a Vermont payday loan complaint: Vermont PDL Complaint

The Attorney General for the State of Vermont successfully secured refunds for approximately 4000 Vermont bank account holders from billing Tree.

“Vermont continues its strong prosecution against those engaged in predatory lending activities,” said Attorney General William H. Sorrell. “This is the fourth and largest settlement against a payment processor of high-interest, unlicensed internet loans and a further warning to the illegal lending industry.”

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From 2012-2014, Billing Tree processed debits from nearly 4000 consumer bank accounts in Vermont on behalf of at least 43 online payday loan lenders. The annual interest rates (APR) often exceeded 100-300%.  Vermont law prohibits annual interest above 24%. None of the 43 lenders had a license to make loans in Vermont.

As of May 2014, Billing Tree ceased processing payments in Vermont involving any online consumer loans.

Under the terms of the settlement, Billing Tree will issue credits totaling $153,282 to the Vermont bank accounts, and will pay $25,000 in civil penalties and costs to the State. The credits represent partial compensation for payment of interest over Vermont’s legal limit.

Consumers who have borrowed from any lender not listed as licensed with the Vermont Department of Financial Regulation can file a complaint with the Attorney General’s Consumer Assistance Program, or mail a complaint to “Consumer Assistance Program,” 146 University Place, Burlington, VT 05405.