Title loan settlement means $ 825K for North Carolina consumers – The Coastland Times

A Florida-based lender will pay $ 825,000 while resolving a legal complaint that accused the company of making illegal small loans in North Carolina.

A Wake County judge accepted the settlement between Approved Financial Inc. and Attorney General Josh Stein. He had accused Approved Financial of unlicensed loans, illegal debt collection and unfair and deceptive activities. The company does not admit to having broken the law.

Stein alleged that the company made more than 400 loans online – typically $ 1,000 to $ 2,500 – with high interest rates secured by the securities on the borrowers’ vehicles, Stein’s office said in a statement. Press.

Such loans – in which cars can be sold when payments are late or loans are in default – are illegal in North Carolina. Stein alleged the company tried to avoid the ban by asking many people to collect money from across the border.

Some settlement funds will go to consumers whose loans are canceled and canceled, Stein’s office said, while another portion will be expense and interest reimbursements. Around 75 customers whose vehicles have been taken back and sold will also benefit.

The settlement, finalized last Friday, also prevents Approved Financial from making consumer loans in North Carolina.

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