Attorney General Shapiro Sues Out-of-State Car Title Lender for Violating PA Usury and Racketeering Laws
Lawsuit Seeks reimbursement in excess of $3 Million in prohibited Interest to 3,200 PA customers together with launch of Over 1,000 Remaining Title Liens
PHILADELPHIA — Attorney General Josh Shapiro today filed a lawsuit against a vehicle that is delaware-based loan provider for violating Pennsylvania’s usury and racketeering regulations.
The lawsuit alleges that Dominion handling of Delaware, Inc. and Dominion Management Services, Inc., which did business as CashPoint, issued loans with rates of interest significantly payday loans online in Wyoming more than 200 % – in a few full instances up to 360 per cent interest. As previously mentioned within the lawsuit, CashPoint loaned significantly more than $2.5 million through 3,200 unlawful name loans to Pennsylvania residents.
Since 2013, CashPoint has collected $5.7 million from Pennsylvania customers toward payment of those loans – a 128 per cent revenue.
“These defendants believed that they could evade Pennsylvania laws and exploit consumers by charging illegally high interest rates,” Attorney General Josh Shapiro said because they were based in Delaware. “By filing this lawsuit, I’m keeping them accountable and working to safeguard consumers into the Commonwealth from the kinds of schemes.”
Title loans are high-cost installment loans that want the debtor to pledge a car name as security. Since name loans are incredibly high priced, customers typically move to title loan providers when they’re at their most that is vulnerable after losing work or dealing with major medical expenses. Under Pennsylvania usury and racketeering guidelines, title loans are effortlessly forbidden because name lenders generally charge rates of interest far over the Commonwealth’s 6 per cent to 24 % yearly interest restriction. Continue reading “Attorney General Shapiro Sues Out-of-State Car Title Lender for Violating PA Usury and Racketeering Laws”