A class action lawsuit has been filed against the payday lender alleging predatory lending. The lawsuit claims Advance America systematically traps customers in loans they cannot repay and therefore violates Missouri law.
The lawsuit claims Advance America required borrowers to repay loans in four payments, while state law allows borrowers six payments. Borrowers were then trapped in loans charging more than 400 percent interest, despite interest at 324 percent capped by laws.
The Spartanburg, South Carolina-based company and its subsidiaries Cash Advance Centers of Missouri, do business as Advance America. The company operates 2,900 cash advance stores in 37 states, 82 of which are in Missouri.
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