State gets tough on payday lenders. Operators of Cash Cow are faced with illegally milking clients by billing huge rates of interest on loans.
Operators of Cash Cow are charged with illegally milking clients by asking huge interest levels on loans.
The quickly growing “payday” lending industry, which charges customers interest levels of 500 per cent or maybe more for short-term loans, faced its very very very first major crackdown in Florida on Thursday.
Their state charged Jeffrey C. Swank, owner associated with the money Cow chain, and four associates with racketeering, usury and other crimes, and seized $565,743 from business and individual bank reports.
The Tallahassee company, which includes 15 stores in North and Central Florida, is certainly one of lots of check-cashing chains which have sprung up all around the state which will make one- or two-week pay day loans at huge interest levels.
As well as charging you usurious prices for pay day loans, hawaii says money Cow defrauded vehicle owners whom utilized their automobile games as security to borrow funds.
Statewide Prosecutor Melanie Ann Hines filed the fees in Leon County Circuit Court against Swank, 36; Paul J. Shovlain, 58; Christie W. Hughes, 29; Reid E. Smith III, 37; and Michelle Smith, 35. Swank, whom faces 145 costs, had been booked during the Leon County Jail and released. Others are anticipated become arrested on the next couple of days.
The costs would be the results of an investigation that is joint the Florida Department of Banking and Finance together with Florida Highway Patrol. Continue reading