December 9, 2021 – Former Allied Cash Advance Borrowers will begin receiving settlement payments

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Virginia Commonwealth Attorney General’s Office

Mark the herring
Attorney General

202 North Ninth Street Richmond, Virginia 23219

For media inquiries only, contact:
Charlotte Gomer, Communications Director
Call: (804)786-1022
Mobile: (804) 512-2552
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~Checks for amounts between $20 and $491.40, and totaling $850,000 in total, will start arriving this week to over 12,300 former borrowers~

RICHMOND – Attorney General Mark R. Herring today announced that more than 12,300 borrowers who have been harmed by Allied Title Lending, LLC d/b/a Allied Cash Advance (“Allied”) open-ended credit practices will begin receiving an amount between $20 and $491.40 as part of a settlement negotiated by the Attorney General herring. In March 2021, Attorney General herring secured a permanent injunction against Allied, $850,000 in restitution for clients and an additional $150,000 in attorneys’ fees and costs.

“The resolution that my team and I were able to achieve with Allied provides meaningful debt restitution and forgiveness to tens of thousands of Virginia consumers,” noted Attorney General herring. “Before Virginia’s consumer credit laws changed earlier this year, many lenders turned to open credit lending to charge astronomical interest rates on small dollar loans to financially vulnerable Virginians. I am also pleased that my team and I were able to resolve our claims against Allied in a manner that provides meaningful restitution and debt relief to tens of thousands of Virginia consumers.

In his complaint, the Attorney General herring alleged that Allied violated Virginia’s consumer finance law in two ways: (1) Allied imposed a $100 origination fee on its loans after it provided the loan funds in violation of the requirement under which lenders of open-ended credit plans provide a minimum grace period of 25 days before imposing finance charges; and (2) Allied engaged in a quasi-payday loan model by encouraging and enabling borrowers to enter into new contracts each month, essentially rolling over the same loan for months and sometimes years.

The Commonwealth provides checks to consumers most affected by Allied’s wrongful conduct. This includes those who repaid their loans during the grace period and paid the $100 origination fee, and those who were subject to quasi-payday loan conduct and paid off many accounts during the grace period. Consumers who paid an account during the grace period will receive $20. Consumers who have paid for two accounts will receive $25. All other consumers receiving refunds will receive $9.45 for each account they paid during the grace period. For example, a consumer who has paid for three accounts will receive $28.35 and a consumer who has paid for 52 accounts will receive $491.40.

The settlement also included consumer relief in the form of debt forgiveness. Under the settlement, Allied has finally agreed to stop collecting on any open accounts opened during the period between September 23, 2013 and July 23, 2017. The total value of debt forgiveness granted on these accounts exceeds 21 .7 million.

Attorney General herring hired a Settlement Claims Administrator to distribute restitution monies to affected consumers. Any consumer who believes they are eligible for a refund, but does not receive a refund letter or check, may contact the Settlement Administrator at the following toll-free number to inquire about their eligibility and provide a more current address: ( 833) 531-8941.

Consumers who have questions about the Settlement, the Settlement administration process, and who is eligible for a refund may also visit the Frequently asked questions posted on the Attorney General herring website.

Allied operated at various times at 23 sites in the following Virginia locations: Alexandria, Charlottesville, Fredericksburg, Hampton, Harrisonburg, Highland Springs, Lynchburg, Manassas, Mechanicsville, Newport News, Norfolk, Portsmouth, Richmond, Rocky Mount, Staunton, Tappahannock , and Winchester.

This case was handled by the Attorney General’s predatory lending unit herring Consumer Protection Section. The unit was created as part of the Attorney General herring reorganization of its consumer protection section, which now emphasizes predatory lending in addition to deceptive behavior, antitrust matters, charitable solicitation, etc. During the Attorney General herring administration, the Attorney General’s Consumer Protection Section has recovered about $410 million in consumer relief and payments from violators.

For more information about the settlement or to file a complaint regarding a consumer protection issue, please contact the Attorney General herring Consumer Protection Section:

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