RICHMOND, Va. (Legal Newsline) – MoneyKey Inc. will pay $4 million to resolve alleged violations of Virginia’s consumer finance statutes, according to the state’s Attorney General Mark Herring.
MoneyKey, a Delaware-based online consumer lender, allegedly imposed illegal charges on borrowers who received open-ended credit loans – a violation of the state’s consumer finance statutes.
"Consumers need to know their rights and all the possible risks before utilizing payday, car title or open-ended consumer loans," Herring said. "Lenders who want to do business in Virginia have an obligation to operate within the law and we will always fight to hold them accountable when they fail to follow our laws and harm consumers. I'm really pleased with the significant relief we were able to secure as part of this settlement and I hope it also serves as a reminder to consumers to know their rights when they take out a loan."
The settlement will provide, from a pool of $4 million, forgiven interest and fees to 5,000 citizens who defaulted on loans or are still paying them off. An additional $18,000 will be given in restitution to more than 170 consumers who had already repaid their advance.