Illegal Lending Schemes by Check ‘n Go, cash Mart Target Low-Income Borrowers With Interest Exceeding 400 Percent APR

City Attorney Dennis Herrera today filed suit against storefront lending organizations Check ‘n Go and Money Mart, along with their online affiliates and an associated out-of-state bank, for illegal, unjust and fraudulent company methods stemming from their advertising of short-term installment loans at illegal interest levels to low-income borrowers. The lawsuit names Wilmington, Del.-based First Bank of Delaware (OTC:FBOD) as a defendant for aiding and abetting the storefront institutions’ illicit lending schemes in addition to Check ‘n Go, Money Mart and its affiliates.

Check ‘n Go and cash Mart are licensed deferred deposit loan providers, offering “payday loans” for which a debtor provides the loan provider a post-dated sign in change for cash. Leer más Acerca deHerrera Sues Storefront ‘Payday Lenders’ for Illegal Company Methods, Deceptive Advertising …