Herrera Kicks Off 3-Month Push to Refund $7.5 Million to Borrowers From Payday Lenders
July 9, 2012
San Francisco City Attorney Dennis Herrera has initiated a three-month statewide outreach effort to refund approximately $7.5 million to consumers who obtained short-term loans from Money Mart and Loan Mart between 2005 and 2007 and oversized payday loans from the companies in 2005. He said the money will go to those who received such loans as a result predatory lending practices. Eligible borrowers will receive funds to cover the majority of the interest and fees paid, ranging anywhere from $20 to $1,800. The repayment is part of a settlement between Herrera's office and the payday lenders for unfair and fraudulent business practices, filed in 2007. Herrera said the short-term lenders must make a reasonable effort to locate victims; however, some borrowers may have moved or may not have understood letters from the restitution administrator. "We will be working tirelessly for the next three months to identify as many potential claimants as possible, and to benefit all the hardworking Californians who deserve restitution," he said. His office has reached out to reporters and broadcasters to help identify potential claimants in the state.
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