Crack Down on Payday Loan Lender in Washington

Historical archive, first published 2006 — payday-lending laws and rates have changed since. Preserved for the record.

Sometimes, payday advance operators get slapped with a fine or suspension of their business.

Other times, however, the crime deserves a harsher, more permanent penalty.

Such is a recent case in Washington. Regulators of fast payday loans in the state have cracked down on Expressit Inc. and its owners, Carl and Elaine Ehresman. They've imposed a lifetime ban from the industry on the Expressit owners.

The Department of Financial Institutions (DFI) said the owners have agreed to the ban, while also agreeing to pay more than $300,000 in restitution to more than 350 customers.

The state alleged that the Lacey-based owners violated various lending laws, including:

• Making quick payday loans without a license
• Failing to provide written agreements or disclosures to borrowers
• Making loans with fees in excess of legal limits
• Refinancing payday cash loans with proceeds from other loans.

"The Ehresmans … have 30 days to make restitution to 352 consumers and must provide DFI with documented proof following its completion," DFI officials said in a statement.