“The two companies–County Bank Of Rehoboth Beach, Del., and TC Services
Corp., a Pennsylvania payday business that does business as Telecash–agreed to pay
refunds to New York consumers and another $300,000 in penalties and costs. In
addition, the two companies are prohibited from collecting on any outstanding
payday loans to New Yorkers.According to the complaint, Telecash and CRA Services Inc., another
Pennsylvania payday business that operates as Cashnet, made thousands of illegal payday
loans to New York consumers under a fraudulent “rent-a-bank scheme” with County
Bank. Cashnet is now defunct and didn’t contribute to the settlement.”
The total settlement will be for $5.2M. You can read the full article in the Morningstar titled, “New York to Distribute $5.2 Million Payday Loan Settlement”
New York is not alone. In Wisconsin, there was a class action lawsuit settled for $432k earlier this year. In Wisconsin, payday loans are perfectly legal, but the payday business was not licensed.
