Attorney General Peter J. Nickles announced today that the District has filed suit against CashPoint, a money lender that issues consumer loans by securing a motor vehicle title. CashPoint is operated under the Virginia based corporation, Dominion Management Services, Inc.
The District’s suit alleges that in making loans to DC consumers, CashPoint charged interest rates at around 360 percent per year. Such interest rates are well-above the maximum amount allowed under DC law, which is 24 percent per year. The suit also alleges that when District consumers were unable make repayments, CashPoint in some instances would employ illegal tactics in an effort to collect payment, including abusive collections practices and unauthorized repossession of a consumer’s motor vehicle.
“I will pursue this matter vigorously to ensure that CashPoint returns all ill-gotten gains to DC consumers based upon these loans,” said Attorney General Nickles.
The lawsuit is part of an invigorated effort by the Attorney General’s office to increase enforcement of consumer protection laws in the District.
CashPoint’s TV commercials, which are advertised heavily on local TV stations, lure consumers to its Northern Virginia locations with promises of “Cash in Minutes” and “No Credit Check.”
Attorney General Nickles encourages District consumers who have had any dealings with CashPoint, or any other auto title lender, to contact his office’s consumer hotline at (202) 442-9828 or email email@example.com.
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