Some Californians Eligible For Refunds From Payday Lenders

SAN FRANCISCO (CBS 5) – Californians who have used payday lending services have a chance to receive refunds, as part of a $7.5 million reimbursement program.

The program is part of a legal settlement between the San Francisco City Attorney's office and payday lenders Money Mart and Loan Mart. A 2007 lawsuit accused the companies of charging exorbitant interest rates on short term loans, some as high as 400 percent.

"Individuals across the State of California could file claims and receive up to $1,800 in reimbursement for interest and fees that they paid as a result of the payday loans they received from Money Mart," said San Francisco City Attorney Dennis Herrera at a Thursday news conference.

Related Link:
Information On Payday Loan Settlement

According to the City Attorney's office, consumers who obtained short-term installment loans from Money Mart and Loan Mart from 2005 through 2007 are eligible. Also eligible are consumers who took oversized payday loans from the two companies in 2005.

To get a refund, eligible consumers must file a claim with the San Francisco City Attorney's office before October 1st.

As part of the settlement, Money Mart and Loan Mart is also required to forgive $8 million in debts owned by California consumers and pay the City and County of San Francisco $875,000.

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