McGraw Suing Payday Lenders
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Posted: 6:25 PM Sep 5, 2007
McGraw Suing Payday Lenders
CHARLESTON, W.Va. (AP)
Attorney General Darrell McGraw's office is suing 17 more Internet payday lenders for allegedly failing to comply with investigative subpoenas.
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Attorney General Darrell McGraw's office is suing 17 more Internet payday lenders for allegedly failing to comply with investigative subpoenas.

McGraw has also filed contempt of court motions against 10 other payday lenders. These lenders allegedly failed to comply with his investigative subpoenas after being ordered to by a Kanawha County circuit judge.

In 2005, McGraw's office began investigating companies that make payday loans to consumers over the Internet. West Virginia law does not allow payday lending.

As a result of the investigating and dozens of lawsuits, 28 Internet payday lenders have, so far, signed settlement agreements with McGraw's office. In these agreements, they've promised to stop making and collecting payday loans and to refund unlawful interest and fees.

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