Thursday, February 19, 2009

Payday Loan Company Loses $2.5 Million in Settlement

Fast Cash Loans forced to give up $2.5 million

When you go to a payday loan company and take out a loan, it is expected that you will repay that loan within the agreed time period. Typically, this period is two weeks. If you do not repay within the allotted time period and also fail to repay your loan with an installment plan as some lenders offer, it is reasonable and within the legal rights of pay day loans companies to attempt to collect outstanding debt.

Apparently, Federal Way in Washington State thinks that we should instead live in a financial Never Never Land where borrowers do not have to be “burdened” by the responsibility of repaying their debts. Owen Lei of KING 5 TV News in Seattle reports that the Federal Way lender Fast Cash Loans will pay $2.5 million in court settlement with former clients who sued because they want to fly kites rather than be adults and pay their debts.

But isn’t the lender being defrauded by negligent borrowers?

Customers involved in the class action against Fast Cash Loans claim that voicemails left by representatives of the company were defamatory. Moreover, they object to said representatives presenting themselves as “fraud investigators,” according to Lei. How is that inaccurate? Hasn’t Fast Cash Loans been defrauded by customers who don’t pay?

Pacific Financial Holding, the parent company for Fast Cash Loans, will pay $2.5 million to end the negative publicity, although they maintain there has been any wrongdoing on their part. They will continue to offer payday loans.

Legitimate means, legitimate ends

“I guess everybody’s reaction when they listen to them is outrage, when you listen to someone being so… arrogant, I believe is the word, about their abuse,” said Michael Kinkley, an attorney for the plaintiffs. Mr. Kinkley, you’re wrong. People who are fed up with people expecting bailouts when they have been irresponsible are NOT outraged. They’re outraged at enabling mouthpieces like you who profit from the breakdown of personal responsibility in western society. ... click here to read the rest of the article titled "Payday Loan Company Loses $2.5 Million in Settlement"

No comments:

Post a Comment