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Some Payday Borrowers May Get Refunds

Residents of Central Valley, Calif., may qualify for repayment from a 2007 lawsuit settlement with payday lending company Money Mart/Loan Mart. A judge ordered the firm to compensate California customers up to $7.5 million as part of the accord. The suit was filed on behalf of the people of California, alleging that the payday lending business participated in predatory lending schemes. There is an Oct. 1, 2012, filing deadline for customers who believe they may have been victims of this alleged scheme. Customers may be eligible for a refund if they took out a “payday loan advance” between January and July 2005 or if they borrowed “installment loans” or “CustomCash loans” between July 2005 and March 2007 from a store operated by the company. Qualified recipients could receive refunds of up to $1,800 for interest, fees, and finance charges that they paid.

Central Valley Business Times (CA) 06 Sep 2012

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