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South Carolina borrowers have won a $2.5 million class action lawsuit settlement against the state’s payday lending industry. If approved, the class action settlement could result in claims of about $100 for anyone who took out a short-term, high-interest payday loan between 2004 and 2009 with such lenders as Advance America, Check Into Cash, and more than a dozen others.
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The settlement will resolve a 2007 class action lawsuit against 17 South Carolina lenders that accused them of providing payday loans to individuals they knew could not afford to pay them back and spiraling them into debt. Until last year, lenders could extend payday loans for a period of two weeks by exchanging cash for a post-dated check to the lender that include the principal plus interest (for example, an original loan of $300 would then cost $345 with interest). If the borrower could not repay at the end of the period, the loans were often rolled over and the customer would be assessed an additional $45 interest fee. Some borrowers would even have to take out multiple loans to cover their outstanding loans. As a result, many borrowers were trapped in a spiraling cycle of debt.
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Class members for this class action lawsuit include all South Carolina citizens who entered into a payday loan in South Carolina with any of the following Defendants from August 27, 2004 through December 31, 2009:
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Advance America
Cash Advance Centers of South Carolina, Inc.
Advance America, Cash Advance Centers, Inc.
Carolina Payday Loans, Inc.
Southern Fast Loans of South Carolina, Inc. d/b/a Quick Cash
Check Into Cash of South Carolina, Inc.
Check ’N Go of South Carolina, Inc.
Southern Specialty Finance, Inc.
QC Holdings Cos.
QC Financial Services, Inc.
Local Cash Advance of SC, LLC
Local Cash Advance of South Carolina III, LLC
Local Cash Advance of South Carolina II, LLC
Local Cash Advance of SC IV, LLC
Express Check Advance of South Carolina, LLC
Check Advance, Inc.
Crusader Cash Advance of South Carolina, LLC d/b/a Crusader Cash Advance
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The class action lawsuit settlement provides the following benefits to four types of class members, which are outlined in the class action settlement notice. Depending on which class you fall in, you can have all of your delinquent debt you owe on the payday loans 100% forgiven, 75% forgiven, or given the opportunity to participate in an Extended Payment Plan. You may also submit a claim for up to $100.
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All claim forms must be postmarked no later than September 1, 2010. You have until August 27, 2010 to opt out of the class action settlement. A fairness hearing will be held on September 15, 2010. For more information, including a downloadable claim form, visit scpaydayclaimsettlement.net.
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Updated August 17th, 2010
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25 thoughts onPayday Loan Class Action Settlement
What happened to the second round of payments it’s been long overdue
I have not heard from anyone in regards to receiving a check or reimbursement. Can someone please contact me. Thank you
TO THIS DAY I STILL HAVENT HEARD ANYTHING OR GOT ANY TYPE OF MAIL ABOUT THIS. WHERE ARE THE CHECKS?
I, have had several loans and I did fill out the paper work and have not heard anything from the company, and the phone number does not work, what is on the form. Someone should email or send letters and let people know what is going on.
I, too, filled out the necessary paperwork and NEVER heard back from anybody. The phone number listed on the claim for is no longer in service and the website address is not valid. Were consumers bam-boozled out of their settlement?
WE MY HUSBAND AND I HAD 4 EACH AND I FILLED THE NESSECARY PAPERS OUT WE GOT IN THE MAIL .WE HAVE NOT HEARD ANYTHING.WHO DO I NEED TO CONTACT?
THANK YOU
DON & DARLENE DAVENPORT
I too had loans @ these companies! Filled out paperwork and have yet to hear anything! I feel we need to be repaid for the $ spent every 2 weeks renewing or paying fees when there was people getting paid monthly that had to only pay once a month whereas those of us that got paid every 2 weeks were paying double!
I also filled out a claim form. I had payday loans out with 4 of the companies mentioned. I never received any response. What do I need to do?
Payday Loan Class Action Settlement
I also filled out my paper work and sent it back. i had not heard anything , could you please tell me what happen. I had loans with advance america,checkinto cash ,palmetto,express checking,first advance happy pay day I was paying them every two weeks.
Payday Loan Class Action Settlement
i filledout the paper and sent it back and never heard anything back ……i had 2 with cash advance 2 with advance america 2 with payday loans 2 with check into cash 2 for check and go 2 with check advance and 2 with crusaders cash advance could u please let me know what happen….tami littleton