RICHMOND, Va. (Legal Newsline) — Virginia Attorney General Mark Herring announced Feb 23 that eight affiliated online lenders and debt collectors will pay a total of more than $250,000 after allegations of offering unlawful open-ended credit plan loans.
The defendants in the case include six lenders—Field Asset Service Team LLC, VIM Holdings LLC, MR Capital Group LLC, Nascent Holdings LLC, B Financial LLC, and DTS Capital LLC—and two debt collectors—Bradley Goldberg & Miller LLC and U Solutions Group LLC.
"Virginia's open-end credit statute is being exploited by more and more lenders, especially online lenders, to provide extremely expensive loans to Virginians," said Herring in a statement. "Open-end credit plan loans are particularly troublesome because they can trap consumers in a cycle of debt that can take years and thousands of dollars to break. Consumers should be wary of these loans, particularly when the terms allow for aggressive debt collection tactics like wage garnishments. My predatory lending unit will continue to aggressively pursue lenders who do not comply with our laws, because their tactics hurt financially vulnerable Virginians who can least afford it."
The predatory lending unit of the attorney general's Consumer Protection Section handled the case.