News & Resources

EDELMAN, COMBS & LATTURNER SUES MORE HIGH-INTEREST LENDERS

The Chicago law firm of Edelman, Combs & Latturner has filed class action lawsuits against three more high-interest lenders:

AUTO TITLE LENDERS, INC.

PECA ENTERPRISES, DOING BUSINESS AS E-Z CASH, USA

LIGHTHOUSE FINANCIAL GROUP OF ILLINOIS, INC.

Auto Title Lenders, Inc. makes 300% loans secured by auto titles, as well as "payday loans." E-Z Cash, USA makes 547% payday loans. Lighthouse Financial Group makes 216% loans secured by auto titles.

All of the complaints allege violation of the Truth in Lending Act, as well as the making of unconscionable loans and violation of the Illinois Consumer Fraud Act. All of the cases were filed in the federal district court in Chicago.

The firm has filed more than 60 cases against high interest "payday loan," "title loan" and similar companies in Illinois and Indiana.

Edelman, Combs & Latturner concentrates in representation of consumers against lenders, car dealers, debt collectors, and other businesses.

Daniel A. Edelman; EDELMAN, COMBS & LATTURNER; 135 S. LaSalle Street, Suite 2040; Chicago, IL 60603; (312) 739-4200; (312) 419-0379 (FAX)

EDELMAN & COMBS SUES INDIANA PAYDAY LENDERS

The Chicago law firm of Edelman & Combs has filed class action lawsuits against the following Indiana "payday loan" firms:

CASH IN A FLASH INC.

CHECK 'N GO OF INDIANA INC.

LOANS TIL PAYDAY INC.

PAYDAY TODAY INCORPORATED

SPEEDY CHECK CASHERS, INC.

Four of the cases were filed in the federal district court in Hammond, Indiana. Speedy Check Cashers was sued in the federal district court in Chicago, where it is headquartered.

"Payday loans" are short term, very high interest rate loans. The loans are typically two weeks in duration and carry annual percentage rates of 100% to over 1800%. The lender generally obtains a post-dated check as a means of repayment. At the end of the two week term, the customer has the option of continuing the loan for an additional period by paying the interest. The loans are typically "rolled over" on multiple occasions.

Generally, companies which make "payday loans" do not advertise the annual percentage rates. Instead, they advertise that the loans cost, e.g., $15 per $100. The consumer does not see the annual percentage rate until he or she is presented with the money.

"Payday loans" are generally made to consumers facing financial emergencies. Once a consumer obtains a "payday loan," he or she will often be unable to pay it off except from the proceeds of additional "payday loans." Often, the "payday loans" force the borrowers into unnecessary bankruptcies.

The lawsuits allege violation of the Truth in Lending Act and Indiana law.

Edelman & Combs concentrates in representation of consumers against lenders, car dealers, debt collectors, and other businesses.

Daniel A. Edelman; EDELMAN & COMBS; 135 S. LaSalle Street, Suite 2040; Chicago, IL 60603; (312) 739-4200; (312) 419-0379 (FAX)

ANOTHER INDIANA PAYDAY LENDER The Chicago law firm of Edelman, Combs & Latturner has filed another class action lawsuit against an Indiana "payday loan" firms, Check Into Cash of Indiana LLC.

This is the sixth Indiana payday lender to be sued. The others are:

CASH IN A FLASH INC.

CHECK 'N GO OF INDIANA INC.

LOANS TIL PAYDAY INC.

PAYDAY TODAY INCORPORATED

SPEEDY CHECK CASHERS, INC.

Five of the cases, including the latest, were filed in the federal district court in Hammond, Indiana. Speedy Check Cashers was sued in the federal district court in Chicago, where it is headquartered. The lawsuits all allege violation of the Truth in Lending Act and Indiana consumer credit law.

"Payday loans" are short term, very high interest rate loans. The loans are typically two weeks in duration and carry annual percentage rates of 100% to over 1800%. The lender generally obtains a post-dated check as a means of repayment. At the end of the two week term, the customer has the option of continuing the loan for an additional period by paying the interest. The loans are typically "rolled over" on multiple occasions.

Generally, companies which make "payday loans" do not advertise the annual percentage rates. Instead, they advertise that the loans cost, e.g., $15 per $100. The consumer does not see the annual percentage rate until he or she is presented with the loan proceeds.

"Payday loans" are generally made to consumers facing financial emergencies. Once a consumer obtains a "payday loan," he or she will often be unable to pay it off except from the proceeds of additional "payday loans." Often, the "payday loans" force the borrowers into unnecessary bankruptcies.

Edelman, Combs & Latturner concentrates in representation of consumers against lenders, car dealers, debt collectors, and other businesses.

Daniel A. Edelman

EDELMAN, COMBS & LATTURNER

135 S. LaSalle Street, Suite 2040

Chicago, Illinois 60603

(312) 739-4200

(312) 419-0379 (FAX)

EDELMAN, COMBS & LATTURNER SUES

TWO MORE INDIANA PAYDAY LENDERS

The Chicago law firm of Edelman, Combs & Latturner has filed two more class action lawsuits against Indiana "payday loan" firms, Fast Cash USA, Inc. and Payday Loan Center, Inc.

These are the seventh and eighth Indiana payday lenders to be sued. The others are:

CASH IN A FLASH INC.

CHECK INTO CASH OF INDIANA LLC.

CHECK 'N GO OF INDIANA INC.

LOANS TIL PAYDAY INC.

PAYDAY TODAY INCORPORATED

SPEEDY CHECK CASHERS, INC.

The two most recent cases were filed in federal district court in Indianapolis. The others are in the federal district courts in Hammond, Indiana or Chicago, Illinois. The lawsuits all allege violation of the Truth in Lending Act and Indiana consumer credit law.

"Payday loans" are short term, very high interest rate loans. The loans are typically two weeks in duration and carry annual percentage rates of 100% to over 1800%. The lender generally obtains a post-dated check as a means of repayment. The loans are typically "rolled over" on multiple occasions.

"Payday loans" are generally made to consumers facing financial emergencies. Once a consumer obtains a "payday loan," he or she will often be unable to pay it off except from the proceeds of additional "payday loans." Often, the "payday loans" force the borrowers into unnecessary bankruptcies.

Edelman, Combs & Latturner concentrates in representation of consumers against lenders, car dealers, debt collectors, and other businesses.

Daniel A. Edelman; EDELMAN, COMBS & LATTURNER; 135 S. LaSalle Street, Suite 2040; Chicago, Illinois 60603; (312) 739-4200; (312) 419-0379 (FAX)

EDELMAN, COMBS & LATTURNER SUES

ANCHOR MORTGAGE CORPORATION The Chicago law firm of Edelman, Combs & Latturner has filed a class action against Anchor Mortgage Corporation, of Chicago. The action alleges that Anchor violated the Fair Credit Reporting Act by "pulling" consumer credit reports as a part of a marketing survey.

The Fair Credit Reporting Act protects consumers' privacy by making it unlawful for a business to "pull" credit reports on individuals unless they (i) authorize the credit bureau in writing to disclose their credit report, (ii) have an existing credit relationship with the business, (iii) apply for credit from the business, (iii) initiate a transaction with the business, (iv) receive a firm offer of credit from the business, or (v) seek employment from the business. Conducting a marketing survey is not a permissible purpose.

The plaintiffs, Mr. and Mrs. Serafin, discovered that their credit report had been "pulled", complained to state regulators, and learned that it had been "pulled" as part of a marketing survey.

The lawsuit was filed in the federal district court in Chicago. Serafin v. Anchor Mortgage Corp., 99 C 5472.

Edelman, Combs & Latturner concentrates in representation of consumers against lenders, car dealers, debt collectors, and other businesses.

Daniel A. Edelman stated that "this practice is a gross violation of consumer privacy. Companies are not allowed to willy-nilly rummage around peoples' credit files." The firm has received complaints that other businesses were "pulling" credit reports without permissible purposes, and additional lawsuits complaining about this practice could be expected.

Daniel A. Edelman
EDELMAN, COMBS & LATTURNER
135 S. LaSalle Street, Suite 2040
Chicago, Illinois 60603
(312) 739-4200
(312) 419-0379 (FAX)