SAN FRANCISCO, March 20, 2013 /PRNewswire/ -- City Attorney Dennis Herrera today announced the final week push to reach Check 'n Go borrowers in California who may be eligible for significant refunds for the interest, fees and finance charges they paid on their online installment loans. The deadline for borrowers to file refund claims, which are expected to range from $20 to more than $4,600 for each eligible claimant, is March 28. Claim forms are available online at www.caloanrefund.org.
San Francisco's civil lawsuit alleged that the Cincinnati-based Check 'n Go engaged in an illicit "rent-a-bank" scheme aimed at skirting California's maximum allowable annual interest rate of no more than 36 percent for that type of loan. According to records obtained before and during the course of the litigation, Check 'n Go made online installment loans to California consumers with interest rates as high as 400 percent—far in excess of what state law allows—as late as June 2008.
Though Check 'n Go acknowledged no wrongdoing to settle the litigation, the company agreed to commit $4.3 million toward restitution to borrowers who obtained online loans between Nov. 2006 and June 2008.
"As we enter the final week for eligible Check 'n Go borrowers to get their claims filed, we're working overtime to get full restitution to every Californian who deserves it," said Herrera. "I'm incredibly grateful to the many state legislators, community organizations and consumer advocates throughout the state who are trying to spread the word about this refund program to all potential claimants. Maximizing refunds paid out under this settlement sends a message to lenders that California's consumer protection laws have teeth, and we're serious about enforcing them."Check 'n Go claimants may be qualified for restitution if they obtained a four-month installment loan online between Nov. 2006 and June 2008 through the websites: checkngo.com, ilp.fbdel.com, and commandloans.com. To be eligible for repayment, borrowers must mail a claim form and a copy of the required form of identification to the settlement administrator, postmarked by March 28, 2013. Herrera is urging potential claimants who think they may be qualified for restitution to visit, email or call for more information: State of California ex rel. Dennis Herrera v. Check N' Go of California, Inc., et al. (San Francisco Superior Court Case No. CGC-07-462779). SOURCE City Attorney Dennis Herrera