MONTPELIER, Vt., July 9 -- The Vermont Attorney General issued the following news release:
Cash Cure, LLC, a Delaware company that provides short-term, high-interest internet loans, will pay almost $78,000 to Vermont consumers and pay the State of Vermont$15,000 to settle claims that the company violated Vermont consumer protection and lending laws. Attorney General William H. Sorrell described the settlement as the fourth in a recent effort to protect Vermonters from predatory lending: "On April 23, 2014, my office announced a sweeping effort to protect consumers from lenders who ignore Vermont's laws and take advantage of Vermonters in economic distress. We will continue to vigorously pursue illegal lenders who make loans in contravention of our state laws." Attorney General Sorrell urged consumers to review these tips before taking out a loan. More information on the Attorney General's crackdown on illegal lending can be found here.
Since 2010, Cash Cure made loans in amounts between $200-$800 to 94 Vermont consumers and collected $77,938.41 in interest and fees. Often Cash Cure charged fees and interest that exceeded the total amount borrowed, typically in excess of 300% annual interest.
Under the terms of the settlement, Cash Cure will: (1) refund all interest and fees collected from Vermont consumers for a total of $77,938.41, paid to 94 consumers; (2) pay $15,000 in civil penalties and costs to the State; (3) cancel all outstanding debts (whether current or delinquent); (4) refrain from attempting to collect on any Vermont loans; and (5) refrain from doing any loan business in Vermont unless it first complies with Vermont law. Cash Cure stated that, as of August 12, 2013, it has ceased lending to Vermont consumers.
Consumers who have obtained loans from lenders who are not listed as licensed with the Vermont Department of Financial Regulation can file a complaint with the Attorney General's Consumer Assistance Program, or mail a complaint to "Consumer Assistance Program," 146 University Place, Burlington, VT 05405.
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