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Consumer

Payday Lenders Reach $4.3 Million Settlement With SF

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(CBS)

(CBS)

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SAN FRANCISCO (KCBS)— San Francisco City Attorney Dennis Herrera announced a settlement with a major payday lender affecting thousands of consumers on Thursday. At an 11 a.m. City Hall news conference, Herrera said the settlement includes $4.3 million in refunds for consumers of check cashing sites including Check ‘n Go.

“Refunds are expected to range from a minimum of $20 to more than $4,600 per valid claim,” Herrera said.

In addition to Checkngo.com other payday lender websites involved in the settlement include; fbdel.com and commandloans.com.

According to Herrera, Check ‘n Go preyed on the most vulnerable, people living paycheck to paycheck, by skirting the state’s maximum interest rate of 36 percent. Some rates went as high as 400 percent.

Michael Pappas, with the San Francisco Interfaith Council, said churches are reaching out to victims to try to help them with refund claims.

“We are here, we are concerned and we are committed partners,” Pappas said.

The claim period lasts 90 days and begins on Friday. Check ‘n Go has not admitted to any wrongdoing.

For more information and to find out of you qualify for a refund visit www.caloanrefund.org

Consumers may also want to take note of a series of recalls issued by the Consumer Products Safety Commission, including a coffee mug that may spark a fires, Papyrus decorations that carry mold spores, and a baby product linked to 5 deaths; Those are just a few of the CPSC recalls to note this month. For more information, see http://www.cpsc.gov/cpscpub/prerel/prereldec12.html

 

(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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