Intercept Corporation, financial organization working with online loan payments in North Dakota, is being accused of offense against the law concerning consumer protection. The company is obliged to pay $10 000 to the Vermont’s government and $75 000 to consumers who have suffered from infringing activity.
Intercept Assisted in Predatory Lending
William H. Sorrell, Vermont’s Attorney General, declared that payday lenders’ extortionate activity which consists of providing short-term payday loans with extremely high interest rates was strictly forbidden by the state’s law. Vermont has the most serious regulation of the issue in the whole country as its consumer protection law chases organizations which help payday lenders to distribute illegal deleterious loans.
Intercept Corporation is being accused for the second time and this is a good warning for the rest of organizations which work with predacious lenders. You can find more information on the official website of the Attorney General.
Intercept Corporation assisted 28 payday lenders in providing online payday loans. More than 1000 consumers took short-term high-interest loans with the help of processor during the year of 2013.
The interest rate that was charged from the consumers varied from 100% to 300%. Meanwhile, according to the Vermont legislation, the interest rate may not exceed 25%.
Lenders which were performed by Intercept Corporation didn’t have permission to suggest services in Vermont. Online payday loan application stopped being processed by Intercept Corporation last August.
Penalties for Illegal Activity
Intercept Corporation is obliged to transfer $75 004.34 onto each of 1003 consumers’ bank accounts. Thus, each consumer will get credit in the amount of $74.78. This is the difference between debit and credit on consumers’ bank accounts which exceeds the originally borrowed amount.
This $75 004.34 is a compensation for charging more than 25% of interest that is determined by the state law. $10 000 should be paid as legal sanctions to the State of Vermont. Besides, the processor should provide William H. Sorrell with unlicensed lenders’ contact details.
Consumers who got harmed from illegal payday lenders’ activity may get the credit payment from Intercept mentioned above. You may find out whether your lender provided the service through the processor by checking Exhibit A of the settlement.
Besides, it would be useful to know that consumers who are not satisfied with the amount of credit payment may file a complaint sue the lender directly or Intercept Corporation as well. You may find additional information by turning to Attorney General’s Office.
Consumer Assistance Program also makes it possible to file a claim against any lender which is not mentioned in the list of lenders having cooperated with Intercept.
The same may be done towards lenders which suggest services without having a license from Vermont Department of Financial Regulation. Customers should also be careful when applying for Internet loans. It is very important to use the service of trustworthy financial organizations in order to avoid possible problems.