Fast Cash Loans Settles $2.5M Class Action Suit

Local news 5 broke the story regarding a $2.5M settlement by a payday lender, Pacific Financial Holding dba Fast Cash Loans.

What’s remarkable is that the plantiff’s attoneys got 10,000 people to participate. I don’t know a lot about class action law suits, but each person will probably get $200 and the attorney’s will split up $500k. This does not include the attorney’s fees for the defendants.

I guess the practical advice is don’t leave voicemails, don’t send threatening letters and be nice to people, whether they pay you or not.

Part of the dilema for payday lenders is that if they outsource their collections, they tend to start throwing good money after bad money. This is one way to hedge your loan companies exposure.

A collection agency out of Florida collection agency was sued in Illinois for threatening people. There did not seem to be any suits filed against the lender, in this situation.

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