In a consent order with California's Department of Business Oversight, a payday lender called California Check Cashing Stores agreed to refund about $800,000 to consumers, to settle allegations that it steered borrowers into high-interest loans and engaged in other illegal practices. It also agreed to pay $105,000 in penalties and other costs. The settlement involves alleged violations regarding administration of payday loans, which are capped at $300, and the steering of borrowers into consumer loans of more than $2,500 to avoid the state rate caps.
The Los Angeles Times article is here.
