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Thursday, July 26, 2012

Were You Ripped Off by a Payday Loan Company? Go Get Your Refund at City Hall

Posted By on Thu, Jul 26, 2012 at 2:23 PM

This could be yours - SUZANNE STATHATOS
  • Suzanne Stathatos
  • This could be yours

Well, this is odd. The City Attorney's Office is having some trouble getting consumers to come down to City Hall and claim their free money.

So now we're publicizing it: If you've been ripped off by payday loans, here's your opportunity to get some of your hard-earned cash back. Today, City Attorney Dennis Herrera announced that he is doling out some $7.5 million to consumers eligible for reimbursements from Money Mart and Loan Mart.

Until Oct. 1, consumers who were ripped off can file their reimbursement claims for interest and fees that they paid for Money Mart loans. They can get up to $1,800 back, Herrera says. A similar settlement was reached with Check 'n Go last month, and the city is in the process of setting up another claims administration fund.

Money Mart and Check 'n Go, the two largest payday lenders in the U.S., violated California's unfair business laws by charging outlandish interest rates that reached up to 400 percent APR, according to Herrera.

As we know from experience, getting a refund doesn't solve the larger problem for those of you us who need some quick cash now. So City Treasurer José Cisneros was kind enough to explain some of San Francisco's alternatives to relying in payday loans.

He says Bank of San Francisco offers mainstream banking services to those who lack a banking relationship. Payday Plus SF partners with S.F. credit unions and offers borrowers between $50 and $500 at 18 percent APR or below. These loans can be paid off in up to 12 months. CurrenC SF encourages people to use direct deposit to cut out the middleman involved in cashing checks.

"If the money is not exhausted, half of it will go back to the city and county of San Francisco," Herrera told reporters today. The other half will go to organizations "focused on financial education and other community-based efforts." San Francisco is already guaranteed to receive $875,000 from these predatory lenders.

San Francisco Labor Council Executive Director Tim Paulson reiterated the urgency to distribute this money fast.

"In this economy, every nickel that people make is important. People are now choosing between whether or not they should go to school or eat," he said. They're trying "to make sure people's checks go into the pockets of the workers and those families."

If you want to submit a claim form to get your money back, you can do that right here.

Follow us on Twitter at @SFWeekly and @TheSnitchSF

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Suzanne Stathatos


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