The quickly growing “payday” lending industry, which charges customers rates of interest of 500 per cent or maybe more for short-term loans, faced its very first major crackdown in Florida on Thursday.
Their state charged Jeffrey C. Swank, owner regarding the money Cow string, and four associates with racketeering, usury and other crimes, and seized $565,743 from business and bank that is personal.
The Tallahassee company, that has 15 shops in North and Central Florida, is certainly one of a large number of check-cashing chains which have sprung up all around the state to create one- or two-week payday advances at huge rates of interest.
The state says Cash Cow defrauded car owners who used their car titles as collateral to borrow money in addition to charging usurious rates for payday loans.
Statewide Prosecutor Melanie Ann Hines filed the fees in Leon County Circuit Court against Swank, 36; Paul J. Shovlain, 58; Christie W. Hughes, 29; Reid E. Smith III, 37; and Michelle Smith, 35. Read more