In the state of West Virginia, Attorney General Darrell McGraw announced that eight companies would be sued for offering Internet payday loans that were considered illegal. McGraw is demanding that the companies stop all lending at this time.
A lawsuit that has been filed in Kanawha County Circuit Court also asked the judge to order the companies to give up records of their accounts in the state of West Virginia. At this time, Attorney McGraw said that all of the companies have refused to cooperate with his investigation.
Usually, payday loans are made for 14 days with interest. In West Virginia, the law prohibits any interest rates that exceed 18% on consumer loans. McGraw says that the individuals and companies that are being targeted are located in Arizona, Delaware, Florida, South Dakota and California. Since 2005, he has settled lawsuits with 107 payday lenders who were engaged in illegal practices.
In order to avoid illegal lending and scams, it is advised that consumers work with a trusted company such as ConnectedCommunities. If you are in need of a payday loan, apply online today to get the emergency funds you need to your next payday.