Cash Cure LLC will pay $93,000 to settle claims it violated Vermont's consumer protection and lending laws, Vermont Attorney General Bill Sorrell announced this week.
The Delaware-based company made short-term loans whose interest and fees often exceeded the value of the loans, according to a news release. Annual interest typically eclipsed 300 percent.
Under the terms of the settlement, Cash Cure will refund all interest and fees it collected from Vermont consumers, pay $15,000 in civil penalties and costs to the state and cancel all outstanding debts, including any that may be delinquent.
The company may still issue loans in-state, as long as the transactions comply with state law. Cash Cure stated that, as of Aug. 12, 2013, it has ceased lending to Vermont consumers.
Nearly $78,000 in repaid interest and fees will be distributed to 94 Vermont consumers. Cash Cure made 94 loans since 2010, ranging from $200 to $800.
The settlement adds to a recent crackdown on predatory lending, Sorrell said.
In April, Western Sky Financial, LLC; CashCall, Inc.; WS Funding, LLC; and Delbert Services Corp. were required to establish a settlement fund to repay Vermont consumers for similarly predatory loans that violated state lending laws.
T$$ LLC, also settled with the state in April, preceded by the Government Employees Credit Center Inc., in March and Sure Advance LLC, in February.