West Virginia Attorney General Darrell McGraw Is suing seven Internet payday lenders and five bad debt collectors
AG McGraw wants to bar them from continuing to offer payday loan products and collect bad debt from residents of Virginia. Because the usury rates for payday loan operators are so low, payday loan Internet operators em[ploy the choice-of-law model.
McGraw said Tuesday his office filed two lawsuits in Kanawha County Circuit Court, one against the lenders and one against the collectors.
Additionally, McGraw wants the companies to comply with his subpoena demands. Because the Internet companies are not located physically in West Virginia, they are resisting his efforts. Too bad they are not using the offshore or sovereign nation models!
Payday loan internet companies should be licensed and apply appropriate state laws. I have payday loan stores near the West Virginia state line. As long as the W.V. regulators keep payday loans out of their state I’ll continue to service West Virginia consumers. I treat them fairly, I disclose EVERYTHING in LARGE print and I work with my clients when they experience problems paying their loan back.
Thank you, West Virginia regulators!