Suthers, payday lender reach agreement
DENVER (Legal Newsline) - Colorado Attorney General John Suthers announced on Monday that he has reached a $125,000 agreement against a payday lender that allegedly failed to comply with corrective actions put forth in 2009 by the state.
The Dallas-based Payday Everyday of Colorado allegedly failed to fix problems that Suthers' office uncovered in 2009, including a failure to offer extended repayment plans to consumers, failure to obtain yearly updated loan applications and income verification, and not refunding any unearned portions of consumers' finance charges on refinances that happened before a loan's maturity.
The company, which also did business as Payday Everyday and Fastbucks, has had as many as 10 locations throughout the state in the past 10 years, Suthers said.
According to the agreement, filed by the office's Uniform Consumer Credit Code unit, the company will pay more than $125,000 in consumer restitution that will go to approximately 1,675 consumers.
The agreement also keeps the company from reapplying for a supervised lending license in Colorado for the next five years, where it previously had maintained locations in Colorado Springs, Fort Collins, Greeley, Longmont and Pueblo.
Payday Everyday of Colorado so far has refunded $33,000 in finance charges it collected after July 20, when its Colorado payday lending license expired.