Payday Loan Times

The nation’s largest payday loan lender and the West Virginia attorney general’s office have reached an agreement that prevents the company from performing certain collection practices in the state, Darrell McGraw’s office announced Tuesday.

Advance America, Cash Advance Centers Inc., a Spartanburg, S.C.-based regular and bad credit cash loan lender, agreed to discontinue contacting consumers at their homes and leaving door hangers for consumers when attempting to collect alleged debts, McGraw said.

Also, the company will no longer contact third parties, normally listed references on the loan applications, unless the company thinks the person has moved.

The company will also close the zero-balance accounts of the consumers who complained to the attorney general.

Payday loans online are short-term loans or cash advances, which are secured with a postdated check for the full loan amount plus interest and fees. These loans typically have triple-digit interest rates and are illegal in West Virginia.

Advance American affiliates that signed the agreement have offices in Kentucky, Ohio, Pennsylvania and Virginia, each within 50 miles of the West Virginia border. Consumers often travel to these locations to obtain the no fax cash advance loans.

McGraw’s investigation began after the consumer protection division received complaints alleging that Advance America attempted to coerce payment by threatening criminal charges, making unauthorized collection calls to third parties and making personal visits to consumers’ homes in West Virginia, the attorney general’s office said.