$65 Million Settlement: Bad Credit Lender Pays to End Excessive Interest Rate Claims

Bad Credit Lender Pays $65 Million to Settle Claims of Excessive Interest Rates

According to the report of The US Sun, Big Picture Loans a lender that gives loans to people with bad credit but charges very high interest rates, is paying $65 million to settle claims that it charged too much interest. The company says it didn’t do anything wrong but decided to settle to avoid the high costs of a court battle. They argue that they follow the laws of a Native American reservation even though the people running the company are not part of any Tribe. This settlement includes loans from Big Picture Loans, Castle Payday, and Red Rock Tribal Lending.

People who can get money from the settlement are those who pay back more than they borrowed and live in states with limits on interest rates. These states include Arizona, Colorado, New York, and Virginia, among others. In states without such limits, only those who paid more than their state’s legal interest limit can get money. Sadly, borrowers in Nevada and Utah, where there are no interest rate limits, are not covered by this settlement. If you qualify, you don’t need to do anything to get your payment and it will be sent automatically once the settlement is approved.

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(photo: Mint)

A Look at Major Settlements and Their Impact on Fair Business Practices

This settlement is one of many aimed at protecting consumers. Other examples include Visa and Mastercard’s $5.6 billion settlement over fees and WinCo in Oregon paying $3.3 million for high fee claims. These class actions help make sure companies follow fair practices and give relief to consumers who are affected.

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