Check 'N Go Lawsuit Targets Unconscionable Interest Rates
Last Updated on June 26, 2017
Important Information
Attorneys working with ClassAction.org are no longer investigating this matter. The information here is for reference only. A list of open investigations and lawsuits can be viewed here.
At A Glance
- This Alert Affects
- Consumers who have received an installment loan from Check 'N Go within the last four years.
- Damages
- Financial loss, damaged credit scores, and related costs.
- Company(ies)
- Check 'N Go
- Additional Details
- An installment loan is a loan taken out by an individual that is paid back upon pre-agreed dates (often biweekly) in cash. A check for the full amount is kept as insurance by the company.
- Date
- A California lawsuit against Check 'N Go was filed in April 2013.
Note: ClassAction.org is no longer investigating claims involving Check 'N Go pay day loans.
Consumers who have received installment loans from Check N’ Go and entered into payment plans with high interest rates may have legal recourse. It has been alleged that the company may charge as much as 200% interest on loans of $2,600. The company has also been accused of illegally using standardized form contracts, presenting complex financial transactions in an unconscionable manner, and failing to verify with due diligence whether consumers have the financial means to make payments.
California Payday Loans Lawsuit
A recent lawsuit in California alleges that the company’s loan terms are illegal under the state’s Finance Lender Law and Unfair Competition Law. The lawsuit alleges that the company uses unconscionable interest rates and confusing and unexplained contract terms. It also claims Check ‘N Go uses a contract that fulfills the qualifications to be an “adhesion contract,” offering no negotiation, and is therefore unconscionable under CA law. The suit has been filed on behalf of a proposed class that may include thousands of consumers.
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