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Banks have been accused of becoming involved in Internet payday loans, short-term loans offered over the Internet that carry high interest rates. The banks themselves do not actually offer the Internet loans, but they may allow the companies that offer allegedly predatory online loans access to customer accounts, possibly in violation of consumer protection laws. FREE CASE EVALUATION Send your Payday Loans claim to a Lawyer who will review your claim at NO COST or obligation. Internet Loans Internet payday loans are illegal in some, but not all, states. Customers can apply for the loan online?often with quick approval and no credit check?but the expectation is that the loan is paid back with the customer's next paycheck. In some cases, however, interest rates can be exorbitant, sometimes above 500 percent. Further, if the customer does not indicate he or she wants to pay back the entire loan, the lender might renew the loan to the next month, withdrawing the interest payment only. There may also be other finance charges and fees associated with the loan. Combined with the interest, the finance charges and fees could tack on thousands of dollars to what started as a relatively small loan. Payday lending is illegal in Arizona, California, Ohio, http://attorney-in-murrieta.com/more-information/personal-injury/ Montana, Arkansas, New York, Pennsylvania, West Virginia, Georgia, New Hampshire, Vermont, Massachusetts, Connecticut, New Jersey, Maryland and the District of Columbia. Because the payday loans are obtained online, however, lenders maybe illegally lending money to customers in those states. Some states also cap interest rates, making it illegal to charge above a certain interest rate, and although in the short-term the interest rates seem low, they can actually be up to 500 percent over a year. Internet Payday Loans and Banks According to a New York Times article (2/23/13), major banks including JPMorgan Chase, Bank of America and Wells Fargo may enable payday loan lenders access to borrowers' bank accounts in order to make withdrawals. So while the banks themselves do not provide the payday loans, they provide the means for the payday loan companies to do business. Furthermore, companies that offer Internet payday loans might also automatically withdraw money from the customer's bank account, pushing the customer into overdraft and triggering overdraft and insufficient funds fees. In some cases, banks are alleged to have allowed these lenders to continue withdrawing money, even when the customer has asked them to stop, in violation of federal law. According to a Pew Payday Lending in America report, "How Borrowers Choose and Repay Payday Loans" (2/20/13), 27 percent of payday loan borrowers were forced into bank account overdrafts during 2012. Officials are now investigating the role major banks play in online payday loans and whether the banks make it possible for such lenders to offer loans in states where they are illegal. Banks may be profiting off allegedly illegal activity if the automatic loan withdrawals push the customer into overdraft, resulting in bank fees being charged. Even though major banks do not offer the loans themselves, if they allow Internet payday companies to withdraw money from customers' accounts, especially after the customer has requested they stop, the banks could be violating consumer protection laws. Internet Payday Loan Lawsuits Some Internet payday loan lawsuits have been filed against companies alleged to have violated consumer protection laws. In 2010, one such lawsuit against Arrowhead Investments was settled, with the company agreeing to pay $100,000 in restitution and forgiving an additional $432,000 in outstanding loans. The lawsuit alleged Arrowhead violated state consumer law and had unreasonable loan agreements. Arrowhead did not admit to any wrongdoing in the settlement. Consumers who live in states where payday lending is illegal may be eligible to file a lawsuit against the lender. Customers who have requested their banks stop the automatic withdrawals but have still had the money withdrawn from their accounts may also be eligible to file a lawsuit. Internet Payday Lending State Laws Although there are concerns about http://188.8.131.52/~acc237/los-angeles-medical-malpractice-lawyer-com/119-report-details-demise-of-class-actions-15 the high interest rates and fees associated with the loans, another concern about the Internet payday loans is that because they are offered online, they are available to consumers in states where such loans are illegal or where the company may not be properly licensed. Payday lending is illegal in Arizona, California, Ohio, Montana, Arkansas, New York, Pennsylvania, West Virginia, Georgia, New Hampshire, Vermont, Massachusetts, Connecticut, New Jersey, Maryland and the District of Columbia. Internet Payday Loans Legal Help If you or a loved one has suffered similar losses from an Internet Payday Loan, please click the link below and your complaint will be sent to a Consumer Fraud lawyer who may evaluate your claim at no cost or obligation. <br>For the original version including any supplementary images or video, visit http://www.lawyersandsettlements.com/case/internet-payday-loans.html?ref=rss
What are you looking for? Home Page >> Settlements >> Vatterott College to Pay $13M Settlement in Student Fraud Lawsuit Vatterott College to Pay $13M Settlement in Student Fraud Lawsuit Kansas City, MO: A $13 million settlement has been awarded by a jury hearing a consumer fraud lawsuit against Vatterott College. Jennifer Kerr, a 42-year old single mother, sued the college alleging its enrollment procedures caused her to spend thousands of dollars and extra time earning a certificate that proved to be useless in the job market. Specifically, Kerr alleged that she enrolled at Vatterott in 2009 with plans to become a nurse. While the college doesn?t offer a nursing program, Kerr alleges she was told by a college representative that she could take their medical assistant?s degree, which would help her in becoming a nurse. As a result of this advice, Kerr claims she secured over $27,000 in loans and took the program for almost 60 weeks, when she was told that she was in fact enrolled in a preliminary medical office assistant?s personal injury attorney program. Further, Kerr claims she was told that in order for her to get the medical assistant?s degree, she would need to take a total of 90 weeks and spend at least $10,000 more. The jury hearing her case determined that the Missouri-based Vatterott Educational Centers Inc. had violated the Missouri Merchandising Practices Act. It ordered the corporation to pay Kerr $27,676 in actual damages and $13 million in punitive damages. Legal Help If you have a similar problem and would like to be contacted by a lawyer at no cost or obligation, please click the link below. <br>For the original version including any supplementary images or video, visit http://www.lawyersandsettlements.com/settlements/17381/vatterott-college-to-pay-13m-settlement-in-student.html?ref=rss