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My easypay finance10/31/2023 ![]() Pay a total of $216,548.83 to provide full restitution to affected consumers and cover a payment to the District. ![]() Violations of these limits are illegal under the Consumer Protection Procedures Act (CPPA), which prohibits a broad range of deceptive and unfair business practices.Īs a result of OAG’s investigation and action, EasyPay must: An investigation by the Office of the Attorney General (OAG) found that from 2018-2022, EasyPay preyed on hundreds of District consumers by providing loans with an average Annual Percentage Rate (APR) of 163%, a minimum APR of 35.9%, and a maximum APR of 198.98% - well above the District’s usury cap of 24%. District law sets the maximum interest rates that lenders can charge in their written contracts at 24% per year. My office will continue to aggressively enforce DC’s consumer protections to the fullest extent of the law and will pursue every avenue to prevent out-of-state lenders from evading the District’s interest rate cap.”ĮasyPay operated as a rent-a-bank lender offering financing for purchases in DC through two District locations. “Using out-of-state banks as a cover to attempt to circumvent District laws, EasyPay charged customers exorbitant interest rates averaging 163% APR - roughly 7 times higher than DC’s 24% limit - trapping consumers in cycles of debt that threatened to ruin their credit scores and financial security. “This investigation and settlement shuts down EasyPay’s practice of offering predatory loans at outrageously high interest rates to District borrowers,” said AG Schwalb. ![]() In addition to financial terms, EasyPay must follow strict operational conditions going forward to ensure that the company no longer takes advantage of District consumers and complies with District consumer protection laws. Schwalb today announced that EasyPay Finance (EasyPay), a rent-a-bank lender that had operated in the District, will pay more than $215,000 to resolve allegations that it used predatory practices to deceive hundreds of District residents into paying interest rates significantly above DC’s legally allowed maximum rate. WASHINGTON, DC – Attorney General Brian L.
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