Cash-N-A-Flash charged 300% interest on car title loans, settlement says
The agreement has to be approved by a Richmond Circuit Court judge. By signing it, Hampton-based Cash-N-A-Flash and its corporate entity, CNC Financial Services Inc., does not admit any guilt or wrongdoing in settling the lawsuit brought by the state in May. Virginia's consumer finance law bars unlicensed lenders from charging more than 12% interest a year on consumer loans.
Cash-N-A-Flash agreed to refund more than $16,000 in finance charges to consumers, to drop almost $100,000 in back payments and interest and not repossess vehicles. Cash-N-A-Flash also agreed to pay the state $15,000 for legal costs. Consumers can contact the company at (757) 726-2274 with questions about the settlement. The company agreed to accept settlement-related collect calls from outside the local calling area.
"I am pleased we were able to reach a fair and reasonable agreement with Cash-N-A-Flash -- one that will provide immediate refunds and other relief to affected consumers," Attorney General Ken Cuccinelli said in a statement. "We appreciate the company's cooperation in working with us to resolve the claims raised in our recent lawsuit."