Colorado Attorney General John Suthers announced yesterday that attorneys from his office have reached an agreement with a Dallas, Texas-based payday lender, Payday Everyday of Colorado, to settle issues involving the company’s repeated failure to comply with state-ordered corrective actions since 2009. Under the final agency order, filed by the office’s Uniform Consumer Credit Code unit, Payday Everyday of Colorado paid the state more than $125,000 in consumer restitution.
Payday Everyday of Colorado failed to correct problems the Office of the Attorney General uncovered during its periodic compliance examinations dating back to 2009, including:
- Failing to offer extended repayment plans to consumers;
- Not obtaining updated loan applications and income verification from its consumers on an annual basis; and,
- Failing to refund the unearned portions of consumers’ finance charges on refinances executed prior to the loan’s maturity.
Under the order, Payday Everyday of Colorado, which also did business as Payday Everyday and Fastbucks and had as many as 10 locations throughout the state since 2001, will be unable to reapply for a supervised lending license in Colorado for five years. The company maintained locations in Colorado Springs, Fort Collins, Greeley, Longmont and Pueblo.
The restitution the state secures through this order will provide refunds to an estimated 1,675 consumers who took out 10 or more payday loans between Jan. 1, 2009 and June 30, 2010. Checks will be mailed to consumers before the end of January. Payday Everyday of Colorado already has refunded $33,000 in finance charges it collected after July 20, 2010 when its Colorado payday lending license expired due to the company’s failure to submit to the state an accurate 2009 annual report. – Source