Payday Lenders Forced to Settle with Past Clients

Payday lenders are once again in the California spotlight. Officials in San Francisco are seeking out victims of two payday lenders. This city brought about a legal lawsuit against these lenders in 2007, have won the claim, and now have over seven million dollars to return to those that were harmed by the suspect behavior of these two lenders. Specific reimbursements could range from $20.00 to almost $2000.00.  These repayments are to help rectify the damages caused to unsuspecting victims that were charged fees and fines exorbitantly.

The city of San Francisco is now searching for the victims who have rights to this settlement.  A deadline has been set to find these individuals for October 1, 2012. If you, or someone you know, had taken out a payday advance from either Money Mart or Loan Mart during 2007 in the San Francisco area, officials are trying to locate you. The purpose of this press release is to find as many of these victims as possible to allocate these funds appropriately.

This information could apply to yourself, one of the members of your family, a friend, someone you work with, or perhaps simply an acquaintance in your community.  Spreading the word amongst people that you know will help officials to find those to whom this money belongs.

Any individuals who obtained funding from either of these two lenders between the years 2005 and 2007 have eligibility rights to this settlement.

Since 2007, and due to this lawsuit, the legalities behind how lenders are allowed to operate have changed.  Brick and mortar lenders, as well as online lenders, have both had to change their operations in order to be considered legal in the state of California. In fact, California is not the only state that has had lawsuits such as the one mentioned above. You must be careful when applying and using payday lenders, as many still try to operate outside the law and are only brought to justice when there are complaints filed in the local jurisdiction.

Several states have been continuously trying to bring in additional regulations. Some states have even chosen to ban payday lending entirely. Several groups, however, have argued that by banning this type of loan it takes away the borrower’s right to choose. Fortunately or unfortunately, depending on your stance, there are still some offshore lenders, as well as tribal lenders, that do not have to operate within the legalities of the states in which they do business.

By banning payday lending entirely, it may limit the number of individuals that will have access to predatory lenders; however, it will not entirely rid the nation of these predators. The lenders that can afford to offer much higher loan amounts, as well as higher rates, should cause skepticism as it could cost you your savings.

The companies in question in the above mentioned lawsuit still have approximately ten branches open in the San Francisco area. If you still would like to pursue a payday loan, the city itself has created options for you in the form of city-backed lending options, such as Bank of San Francisco and Payday Plus. If you are in a dire financial situation, these two lenders will be more than happy to assist you.