Virginia Sues Payday Lender

July 19, 2013
Fairfax News 
payday lending news

Virginia Attorney General Ken Cuccinelli is suing Internet payday lender Jupiter Funding Group, alleging that it has been making illegal loans without a valid state payday loan license. The Virginia State Corporation Commission requires every payday lender to obtain a license in order to conduct business in the state. Lenders without one cannot charge more than 12 percent in annual interest on a loan. Jupiter Funding’s terms and conditions, however, show that the annual interest rates on its payday loans ranged from 438 percent for a 25-day loan to 1,369 percent for an eight-day advance. The AG alleges that Jupiter Funding has been making loans to Virginia consumers through www.directpaydayfunds.com since Jan. 13, 2010, without a license. Consumers are told to apply for loans through the company’s website; and upon approval, Jupiter wires funds directly to consumers’ bank accounts. Borrowers are required to authorize Jupiter to directly debit loan payments from their bank accounts. The AG's office filed the lawsuit in Arlington County Circuit Court, requesting that it stop Jupiter Funding from violating the payday loan laws and the Virginia Consumer Protection Act (VCPA) and from collecting interest over the state’s legal limit of 12 percent when it does not have a license to do so. The suit also seeks consumer reimbursement and civil penalties in the amount of $2,500 for each VCPA violation.

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