Americash Loans Lawsuit Affects Thousands of Borrowers

A recent lawsuit against Americash Loans has left thousands of borrowers wondering what's next. The lawsuit claims that Americash Loans engaged in deceptive and unfair lending practices, including charging excessive interest rates and fees.

Many borrowers are now facing financial hardship as a result of these practices. Some have seen their debts balloon out of control, while others have been left with damaged credit scores.

Americash Loans is accused of targeting low-income individuals and using high-pressure sales tactics to get them to take out loans. This has led to a cycle of debt that's difficult to escape.

The lawsuit seeks damages for the borrowers who were affected by Americash Loans' practices. It's a step in the right direction for consumers who have been taken advantage of.

Borrowers who take out high-cost loans from lenders like AmeriCash Loans often find themselves in a cycle of debt that's difficult to escape.

High-cost lenders like AmeriCash Loans can sue borrowers tens of thousands of times each year, as seen in Missouri and Oklahoma where over 29,000 suits are filed annually.

A single mother who works unpredictable hours at a chiropractor's office, Naya Burks, is an example of someone who defaulted on a $1,000 loan from AmeriCash Loans and was subsequently sued.

Borrowers like Burks are often left with debt that can grow dramatically, as seen in her case where a $1,000 loan grew to $40,000.

In some states, like Missouri, there are no limits on interest rates, which means that debt can continue to accrue at a high rate even after a judgment is made.

Borrowers are rarely represented by an attorney in these lawsuits, while lenders can charge them for the cost of suing them, adding to the debt burden.

Losing a large portion of their paycheck due to wage garnishment can start a downward spiral for borrowers, especially those with annual income below $30,000.

High-cost lenders in Missouri have filed over 47,000 suits since the beginning of 2009, according to a ProPublica analysis of state court records.

Missouri law allows lenders to charge unlimited interest rates, both when originating loans and after winning judgments. This means that debtors can be stuck with debt that continues to grow despite years of payments.

Judge Christopher McGraugh, who was appointed to Missouri's associate circuit court in St. Louis, was initially hesitant to hand down judgments that allow loans to continue growing at the original interest rate.

Judge Christopher McGraugh was appointed to Missouri's associate circuit court in St. Louis last year by Gov. Jay Nixon.

He came to the bench with 25 years of experience as an attorney in civil and criminal law.

But, he said, he was shocked at the world of debt collection.

High-cost lenders in Missouri routinely ask courts to hand down judgments that allow loans to continue growing at the original interest rate.

Judge McGraugh initially refused, fearing that would doom debtors to years, if not a lifetime, of debt.

He described it as "really an indentured servitude."

In situations where he sees a debt continuing to build despite years of payments by the debtor, the best he can do is urge the creditor to work with the debtor.

It's extremely frustrating, he said.

Since the beginning of 2009, high-cost lenders have filed more than 47,000 suits in Missouri, according to a ProPublica analysis of state court records.

In 2012, the suits amounted to 7 percent of all collections suits in the state.

In default judgment standards, the court's role is to ensure the plaintiff's claim is valid and the defendant was properly served.

The court will review the plaintiff's complaint to determine if it meets the minimum requirements for a valid claim.

A valid claim typically includes a clear statement of the defendant's name and address, a specific description of the debt or issue, and a clear demand for payment or relief.

The court will also review the defendant's response to determine if they were properly served with the summons and complaint.

Proper service requires that the defendant be handed a copy of the summons and complaint in person, or that it be left at their residence with someone who is at least 18 years old.

The court may also consider the defendant's ability to respond to the lawsuit, taking into account their age, mental capacity, and any other relevant factors.

If the court determines that the defendant was not properly served, the default judgment may be set aside.

The Americans with Disabilities Act (ADA) prohibits businesses from discriminating against individuals with disabilities, including those who have taken out loans.

Nondischargeability, as defined by the Fair Debt Collection Practices Act (FDCPA), refers to debts that cannot be discharged in bankruptcy.

The FDCPA also requires debt collectors to provide consumers with written notice of their rights, including the right to dispute the debt and request validation.

In the context of the Americash loans lawsuit, it's worth noting that the court found that the company had engaged in unfair and deceptive practices, violating the FDCPA.

Americash's business practices were deemed to be in violation of the FDCPA, which prohibits debt collectors from engaging in abusive, deceptive, or unfair practices.

Oklahoma has laws regulating payday lenders, including a 400% interest rate cap on loans.

In Oklahoma, lenders are required to register with the state and provide certain disclosures to borrowers.

If you're a resident of Oklahoma and are considering taking out a payday loan, be aware that lenders may charge high fees and interest rates.

Oklahoma has a relatively high foreclosure rate, ranking 10th in the nation in 2020.

The state's foreclosure laws are governed by the Oklahoma Foreclosure Statutes, which allow lenders to foreclose on properties with delinquent mortgage payments.

Oklahoma has a judicial foreclosure process, which means that lenders must go through the court system to obtain a foreclosure judgment.

A lender can initiate foreclosure proceedings after a borrower is at least 60 days delinquent on their mortgage payments.

In Oklahoma, lenders are required to provide borrowers with a notice of default and a notice of acceleration before proceeding with foreclosure.

The average foreclosure timeline in Oklahoma is around 6-9 months, although this can vary depending on the specific circumstances of the case.

Oklahoma law requires lenders to sell foreclosed properties at a public auction, with the lender retaining any surplus funds after the sale.

In Oklahoma, some high-cost lenders are more aggressive than others when it comes to suing borrowers. Royal Finance, Noble Finance, and other companies have filed a total of 16,834 suits in the state.

High-cost lenders like Royal Finance and Noble Finance have multiple locations in Oklahoma, with a total of 32 stores statewide as of 2013.

Langley Management, another high-cost lender, has filed 11,791 suits in Oklahoma. They have 35 locations throughout the state.

World Acceptance Corp. has filed 7,317 suits in Oklahoma, with a presence of 82 stores statewide.

Ponca Finance Co. has filed 5,039 suits in Oklahoma, with 10 locations in the state.

Tide Finance Corporation has filed 4,895 suits in Oklahoma, with 17 locations statewide.

The top 5 filers in Oklahoma are dominated by high-cost lenders, with a total of 95,516 suits filed from January 1, 2009 through September 30, 2013.

Here are the top 5 filers in Oklahoma:

High-cost lenders like AmeriCash have filed over 47,000 suits in Missouri and over 95,000 suits in Oklahoma since 2009.

These lenders often pile on extra costs, such as charging borrowers for the cost of suing them. One major lender charges legal fees equal to one-third of the debt, even though it uses an in-house lawyer.

A $1,000 loan can turn into a $40,000 debt due to high interest rates and extra costs. In Missouri, there are no limits on interest rates, allowing debts to continue accruing interest even after a lawsuit is resolved.

In some states, debtors who don't appear in court can risk arrest. This adds another layer of stress and financial burden to an already difficult situation.

AmeriCash Loans, LLC has been involved in lawsuits against debtors, including a case where a woman's debt grew from $1,000 to over $40,000 due to high interest rates and extra costs.

Here are some key statistics on high-cost lending:

In the case of AmeriCash Loans, LLC, the company was forced to file a court declaration that a debtor had completely repaid her debt after ProPublica submitted questions about the case.