PHILADELPHIA — In a recently filed lawsuit, Pennsylvania Attorney General Josh Shapiro is requesting a $3 million refund from an out-of-state vehicle title lender accused of violating state usury and racketeering laws.
According to the Attorney General's Office, Dominion Management of Delaware Inc., doing business as CashPoint, gave out loans with a 200 to 360 percent interest rate and loaned more than $2.5 million with 3,200 illegal title loans to residents. The company earned a 128 percent profit in 2013, which came from $5.7 million in customer repayment of the loans, the Attorney General's Office said.
One customer's complaint to the Attorney General's Office alleges Dominion workers went to a house of someone he had listed as a reference on his loan information at 2 a.m. Dominion representatives told the reference that they were trying to get back stolen property that the customer had taken.
“These defendants thought that because they were based in Delaware they could evade Pennsylvania laws and exploit consumers by charging illegally high interest rates,” Shapiro said in a statement. “By filing this lawsuit, I’m holding them accountable and working to protect consumers in the commonwealth from these types of schemes.”
Through the lawsuit filed in the Philadelphia Court of Common Pleas, the Attorney General's Office also seeks the release of the "illegal liens" as well as returning the money CashPoint gained from repossession and auctions. In addition, Shapiro seeks civil penalties.