The owner of Advance America will pay $8 million in restitution to Pennsylvania consumers after the payday loan company allegedly charged extremely high interest rates on its loans, Attorney General Kathleen Kane announced last week.
NCAS of Delaware LLC, which did business as Advance America, Advance America Cash Advance Centers, Inc., and Advance America Cash Advance Centers, allegedly charged as much as 386 percent in interest on its Choice Line of Credit loans under the guise of monthly participation fees.
The Attorney General’s Bureau of Consumer Protection alleged that NCAS violated Pennsylvania’s Consumer Protection Laws.
In addition to the restitution, NCAS will pay $2 million to Pennsylvania and forgive approximately $12 million in principal balances that haven’t been paid.
"We maintain that this company disguised its outrageous interest rates as fees, misleading consumers and violating the law," Kane said. "Payday lending practices adversely impact vulnerable consumers and often force them into a cycle of debt from which many cannot recover."
The attorney general's office will notify consumers who are eligible for restitution from the company. Eligible consumers must fill out a claim form to receive a payout.