Home > Lawsuits > Advance America Predatory Lending Class Action
August 13 2007
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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THE INTEREST RATES ARE SO HIGH THAT IF YOU BORROW ON ONLY 5 OR 6 PAYDAYS YOU WILL SOON BE SPENDING YOUR WHOLE PAYCHECK JUST TO PAY THEM BACK. AT WHICH POINT YOU WILL HAVE NO MONEY LEFT OVER FOR FOOD, RENT, ETC. DO NOT BORROW FROM THEM. I WAS A BRANCH MANAGER FOR ONE OF THESE COMPANIES AND I SAW THIS HAPPEN. IT MADE ME SO DISGUSTED I QUIT WORKING FOR THEM. GO TO A CREDIT COUNSELOR, ASK A CHURCH FOR HELP, CALL YOUR CREDITORS AND MAKE EXTENDED PAYMENT ARRANGEMENTS (FOR EXAMPLE THE LIGHT COMPANY). DO ANYTHING BUT DO NOT START USING PAYDAY LOANS.
Posted by Texas
We took out a loan but found ourselves trapped due to excessive interest rate. We continued to repeat the loan to cover the original loan. After several months of doing this we had to stop when the choice was food or paying them. What followed was phone calls harassing us at home and work, and they even called and harassed our parents.
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