Lawsuit Filed Against Payday Advance Company in Missouri
By Paul RizzoPayday Loan Writer
QC Holdings Inc. faces a class-action lawsuit that says the company violated Missouri laws by renewing regular and no fax payday loans an excessive number of times and charging exorbitant interest rates.
The suit, filed Oct. 13 in the Circuit Court of St. Louis County, alleges that QC Financial Services Inc., a subsidiary of Overland Park-based QC Holdings doing business as Quik Cash, renewed a cash advance loan for the plaintiff, Dequae Woods, more than six times at a 469 percent interest rate.
The suit also alleges that Quik Cash didn’t evaluate Woods’ ability to repay the loan, charged more than 75 percent of the original loan amount in interest and fees and violated other Missouri payday advance laws, along with the state’s Merchandising Practices Act.
In a filing Wednesday with the Securities and Exchange Commission, QC Holdings said that it hasn’t filed an answer in the suit, but it plans to try to have the suit dismissed and an arbitration agreement with the plaintiff enforced.
A spokesman for QC Holdings couldn’t immediately be reached for comment Friday.
The suit seeks compensatory damages and an injunction prohibiting Quik Cash from engaging in the allegedly illegal pay day loan practices.
