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Monday, October 21, 2019

North Carolina residents allege TitleMax of South Carolina charged excessive interest rate

Lawsuits

By Carrie Bradon | May 29, 2019


WINSTON-SALEM, N.C. (Legal Newsline) – A group of North Carolina residents has filed a suit against three title loan lenders over allegations that liens were illegally placed on their vehicles.

Aaron Goins, Alicia Adams, Amada Alcock and others filed a complaint on April 4 in the Superior Court of Gulford County, North Carolina against TitleMax of Virginia Inc., TitleMax of South Carolina Inc., TMX Finance of Virginia Inc. alleging violation of the North Carolina Consumer Finance Act and other counts.

The suit states the plaintiffs each entered into one or more title loan transactions with the defendants and the defendants secured the loans by placing a lien on the plaintiffs’ vehicles.

The plaintiffs allege the defendants unlawfully engaged in this business in the state because they have not registered to do business with the secretary of the state. The plaintiffs also allege the defendants charged an annual interest rate that far exceeds the maximum annual rate allowed by the North Carolina Consumer Finance Act.

The suit also states that some of the plaintiffs do not have their contract documents for a variety of reason, one of which is that the documents were in the glove compartments of their vehicles TitleMax has taken. The plaintiffs also allege the defendants have refused to release the contracts.

The plaintiffs are seeking treble damages, punitive damages of $10,000 or more, attorneys’ fees and other relief deemed fit. The plaintiffs are represented by Drew Brown and James R. Faucher of Brown, Faucher, Peraldo & Benson PLLC in Greensboro, North Carolina.

The plaintiffs also request that the court issue an order staying the case in favor of arbitration with according to American Arbitration Rules.

The defendants filed a motion May 10 to remove the case to the U.S. District Court for the Middle District of North Carolina.

U.S. District Court for the Middle District of North Carolina case number 1:19-CV-00489

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U.S. District Court for the Middle District of North Carolina Winston-Salem Division

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