Your bad payment history on illegal, high-interest, payday loans should not be on your credit report. Caddell & Chapman recently filed a class action lawsuit about TransUnion credit reports that include the payment history on void, high-interest loans from internet or “rent-a-tribe” payday lenders, specifically Great Plains and Plain Green. Caddell & Chapman is still investigating several other potential matters involving payday lenders.
These “payday” loans from internet-based lenders customarily charge usurious interest at an exceeding 500%. By operating overseas or through Native American tribes, internet payday lenders try to get around state laws that limit the maximum rates of interest that can be charged. Under the laws of many states, such as Arizona, Arkansas, Florida, Georgia, Kansas, Illinois, Indiana, Maryland, Massachusetts, Montana, New Jersey, New York, North Carolina, Ohio, Oregon, Vermont, Virginia, West Virginia, and others, such loans and any collection efforts are illegal. States, such as New York, have taken steps to protect consumers from such lending practices. Credit reporting agencies should not be reporting adverse payment history about payday loans that are illegal in the borrower’s state. As addressed in the lawsuit filed by Caddell & Chapman and Jacobs Kolton, Chartered, TransUnion’s reporting of such loans is a violation of the Fair Credit Reporting Act (FCRA).
If you or someone you know lives in a state where high-interest payday loans are illegal and has a credit report that shows their payment history on such loans, please contact us. [contact-form-7 404 "Not Found"]