August 3 2007
Dallas, TX: (Aug-03-07) A class action lawsuit was brought against Chicago-based Rewards Network Inc., accusing it of running a loan sharking scheme by structuring deals that had in some cases, restaurants paying an annual interest rate of 419%. The suit, filed in the US District Court of the Central District of California, reached a settlement in which the company agreed to pay $30 million to resolve allegations. Publicly traded Rewards Network, which offers cash advances along with marketing, customer demographic data, and listings in an online restaurant directory, agreed that it was acting lawfully and settling was the right thing to do. Legal counsel stated that the settlement is worth about $64 million, once payments that Rewards Network would have received from the California merchants covered in the settlement, are added in.
[DALLAS NEWS: LOAN SHARK
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