My boyfriend decided to get a Check n' Go personal loan in the amount of $2500 about six months ago. I just recently found out that the interest rate is over 200%. He has been paying $285. every other week and still owes over $2800.00! When I heard about it I though "This has to be illegal" so I did some "Googling" and found that there was a class action suit against the company sometime last year but there were very specific details as to how they are still allowed to charge such a high interest rate. We are in CA and the company is in OH. I would like to find a way to help him get out of this loan that he will probably never pay off!!
Horrible stuff really. Not sure it's illegal, as CA cares more about businesses than people. Try finding an atty for consult here:
CA is one of the most consumer-friendly states in the Union. The general rule is that interest in excess of 10% per annum is usurious and may not be collected in court. There are many exceptions such as for banks, pawn-brokers and paycheck loans, but I think the max is around 36%. If they want to collect, they will have to sue in CA, so the CA limit should apply. All they can recover is the principal, no interest. You should consult a consumer attorney about it.
DISCLAIMERâ€”This answer is for informational purposes only under the AVVO system, its terms and conditions. It is not intended as specific legal advice regarding your question. The answer could be different if all the facts were known. This answer does not establish an attorney client relationship. I am admitted only in California. (Bryant) Keith Martin sbbizlaw.com