Borrowers adversely affected by Allied Title Lending’s lending practices, doing business as Allied Cash Advance, will begin receiving checks in the range of $ 20 to $ 491.40 as part of a settlement negotiated by Attorney General Mark Herring.
In March 2021, Herring obtained a permanent injunction against Allied, $ 850,000 in restitution for clients and an additional $ 150,000 in attorney fees and costs.
âThe 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,â Herring said. 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, Herring alleged that Allied violated Virginia’s consumer credit law in two ways:
Allied imposed a $ 100 origination fee on its loans after providing the loan funds in violation of the requirement that lenders of indefinite credit plans provide a grace period of at least 25 days before d ” impose financial charges.
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 agreement, Allied ultimately agreed to cease collecting on any open accounts opened during the period September 23, 2013 through July 23, 2017. The total value of debt forgiveness provided on these accounts exceeds $ 21.7 million.
Herring hired a claims administrator to distribute the refunds to affected consumers. Any consumer who believes he or she is eligible for a refund, but who 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 to provide a more current address: (833) 531-8941.
Consumers who have questions about the settlement, the settlement administration process, and who are eligible for restitution can also review the Frequently Asked Questions posted on Attorney General Herring’s 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.