Tuesday, November 23, 2010
Attorney General Sues Delaware Payday Lender
WEST VIRGINIA....
West Virginia Attorney General Darrell McGraw has filed a suit seeking almost $4 million in penalties from a Delaware-based payday lender, alleging that Government Employees Credit Center Inc., and its owner, Vincent Ney, have defied a 2007 order requiring them to comply with an investigative subpoena and to stop making and collecting loans in West Virginia. At a hearing in November 2007, Kanawha Circuit Judge Paul Zakaib Jr. approved a fine of $3,000 a day for each day that GECC defied his order. That total has now reached $3.98 million. GECC was supposed to stop making short-term, payday loans over the Internet to West Virginia consumers, but in July 2009, a Cool Ridge woman complained that a collection agency had tried to collect a debt she allegedly owed to GECC. The suit also alleges two collection companies, P.D. Recovery and Dollar Financial Group, improperly collected debts from loans issued by GECC in violation of Zakaib's order. The suit seeks to have those companies return all payments collected and to be similarly penalized for collecting debts in West Virginia without a license.
West Virginia Attorney General Darrell McGraw has filed a suit seeking almost $4 million in penalties from a Delaware-based payday lender, alleging that Government Employees Credit Center Inc., and its owner, Vincent Ney, have defied a 2007 order requiring them to comply with an investigative subpoena and to stop making and collecting loans in West Virginia. At a hearing in November 2007, Kanawha Circuit Judge Paul Zakaib Jr. approved a fine of $3,000 a day for each day that GECC defied his order. That total has now reached $3.98 million. GECC was supposed to stop making short-term, payday loans over the Internet to West Virginia consumers, but in July 2009, a Cool Ridge woman complained that a collection agency had tried to collect a debt she allegedly owed to GECC. The suit also alleges two collection companies, P.D. Recovery and Dollar Financial Group, improperly collected debts from loans issued by GECC in violation of Zakaib's order. The suit seeks to have those companies return all payments collected and to be similarly penalized for collecting debts in West Virginia without a license.# posted by Homer Owens @ 11:01 PM 
