California payday lender pays $ 800,000 to settle predatory loan claims

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A California payday lender has agreed to reimburse consumers about $ 800,000 to settle allegations it steered borrowers into high-interest loans and engaged in other illegal practices, officials said Monday. ‘State.

California check-cashing stores also agreed to pay $ 105,000 in penalties and other fees under a consent order from the state Department of Business Oversight, which clamped down on payday loans and other high-cost consumer loans that critics say are predatory.

The agency, which oversees financial service providers and products, has taken similar action against four other companies since late 2017 as part of an effort to enforce state limits on interest rates for payday loans and other small loans.

The settlement involves alleged violations of administering payday loans, which are capped at $ 300, and directing borrowers to consumer loans over $ 2,500 to avoid rate caps.

Read the full story at LATimes.com.

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