VIRGINIA BEACH, Va. (WVEC) -- Attorney General Mark Herring has reached a settlement with a Virginia Beach open-end credit lender.
"Alternative Finance" will pay $480,000 in refunds and debt forgiveness to nearly 600 customers.
The company allegedly violated the Virginia Consumer Protection Act. It offered consumers short-term loans with periodic interest rates as high as 240 percent without performing credit checks.
Alternative Finance offered those loans from its location on Princess Anne Road and online. It has operated under several different trade names since 2009, including "Redial," "First Dominion Finance," and "Money & More."
The issue was handled by the Attorney General's Predatory Lending Unit. The unit has been reviewing the practices of open-end credit lenders to make sure they aren't taking advantage of consumers.
The Office of the Attorney General will make sure the company complies with the settlement.
Consumers who have questions about the settlement may contact Alternative Finance directly at (757) 490-0339.