North Carolina Attorney General Puts The Brakes On Out-Of-State Lender

North Carolina Attorney General Puts The Brakes On Out-Of-State Lender

11:08am May 21, 2019
North Carolina Attorney General Josh Stein speaks to reporters on Thursday, Aug. 3, 2017, in Raleigh. (AP Photo/Emery Dalesio)

North Carolina Attorney General Josh Stein has temporarily stopped a Florida-based lender from doing business in the state. Stein accused the company of charging as much as 120 percent interest on illegal online loans.

A Superior Court judge granted Stein’s request for a temporary restraining order against Approved Financial, which the Attorney General said is not licensed to operate in North Carolina.

The News and Observer reports the lender skirted state consumer laws by offering their services by email and phone, and requiring borrowers to pick up their money in South Carolina.

Stein has accused the company of charging between 120 percent to 200 percent interest on the illegal loans.

Approved Financial also required borrowers to secure the loans with the titles to their cars, allowing the lender to repossess vehicles from customers with late payments.

The judge’s order stops Approved Financial from doing business in North Carolina for the next 35 days, giving Stein’s office time to seek a permanent injunction. Stein will also seek refunds for borrowers, and pursue civil penalties against the company.

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