Attorney General Mark Herring filed a lawsuit against open-end credit plan lender, Allied Title Lending LLC, for allegedly making illegal, unlicensed loans at 273.75% annual interest, and for violating the Virginia consumer finance statutes and the Virginia Consumer Protection Act in connection with the company’s lending practice.
Attorney General Herring is seeking restitution on behalf of consumers, civil penalties, attorneys’ fees, and asking the court to ban Allied from further violating the Virginia open-end credit statute, our consumer finance statutes, and the Virginia Consumer Protection Act. He is seeking for all open-end credit loans Allied made in violation of the Code of Virginia to be declared null and void, and is also seeking penalties of up to $2,500 per violation, with the exact number of violations to be determined during trial proceedings.
The Complaint alleges that Allied failed to comply with the Virginia law governing open-end credit plan lenders by charging a $100 origination fee during the statutorily-mandated finance charge-free grace period, and that it engaged in a pattern of repeat transactions and “rollover” loan conduct with some borrowers more akin to a payday loan than an open-end credit extension. The Complaint alleges that Allied’s illegal practices took place during the period from July 28, 2013, through at least July 24, 2017, and that the loans Allied made during this time are null and void.
Allied currently operates out of 23 locations throughout the Commonwealth. It has locations in the following localities: Alexandria, Charlottesville, Fredericksburg, Hampton, Harrisonburg, Highland Springs, Lynchburg, Manassas, Mechanicsville, Newport News, Norfolk, Portsmouth, Richmond, Rocky Mount, Staunton, Tappahannock and Winchester.
The lawsuit was filed on September 12 in Richmond City Circuit Court. The Commonwealth is represented in this matter by attorneys in Attorney General Herring’s Predatory Lending Unit. The Unit was established as a part of Attorney General Herring’s reorganization of his Consumer Protection Section, which now includes a focus on predatory lending in addition to deceptive conduct, anti-trust matters, charitable solicitation, and more. During Attorney General Herring’s administration, the Attorney General’s Consumer Protection Section has recovered more than $224 million in relief for consumers and payments from violators.
If you have any consumer-related inquiries, the Office of the Attorney General’s Consumer Protection Hotline telephone counselors are available to assist you with your consumer questions. Please call the Consumer Protection Hotline at 1-800-552-9963 if calling from Virginia, or 804-786-2042 if calling from the Richmond area. You can also subscribe to the Consumer Protection Quarterly Newsletter here.