PORTSMOUTH, Va. (WAVY) — Virginia Attorney General Mark Herring is suing an online loan company he says broke the law by charging people outrageous interest rates.
“A lot of times these loans are financial quick sand and we need to make sure Virginia borrowers are protected,” Herring said.
The lawsuit alleges that Chicago-based Net Credit issued loans of $1,000-$10,000 to more than 47,000 Virginia borrowers between 2012 and 2018 — with interest rates from 34 percent to 155 percent.
“I want to send a clear signal to all lenders out there that if you’re going to operate in Virginia you need to follow the rules and I’m not going to tolerate predatory lenders who are not following the laws,” Herring told WAVY.com.
Herring also alleges Net Credit tried to collect money illegally from borrowers who had filed for bankruptcy.
His office filed suit in Fairfax County and is seeking restitution for borrowers, and a court order banning Net Credit from further violating the Virginia Consumer Protection Act.
“I personally believe that Virginia needs some stronger rules, but until we get those I’m going to enforce the laws we have,” Herring said.
He warns consumers these types of loans are almost always a bad idea.
So check before you borrow.
Be sure you know who you are dealing with and check to see if the they are licensed in Virginia.
10 On Your Side reached out to Net Credit for comment, but the company has not responded.