CashPoint and Loan Max Settlements FAQ’s
1. Who is eligible under this Settlement?
Generally, the eligibility criteria include:
- The loan was made or issued by CashPoint or Loan Max on or after November 24, 2007 at one of their stores in Virginia.
- You were a resident of the District of Columbia at the time the loan was made or issued by CashPoint or Loan Max.
- You were charged interest on your loan at a rate greater than 24 percent APR.
2. What type of restitution are CashPoint and Loan Max going to provide to District consumers who were their customers?
CashPoint and Loan Max have agreed to provide all eligible District consumers the following:
- Each borrower who paid interest in addition to the principal (the amount originally advanced) will get a refund for the entire amount of interest.
- For those borrowers whose motor vehicles were repossessed and sold at auction, bothcompanies have agreed to provide you with the amount that your vehicle sold for at auction.
- For those borrowers whose motor vehicles were repossessed but are still in Loan Max or CashPoint’s possession, the companies have agreed to return all vehicles at their expense within 14 days of the Execution Date of this Settlement.
- If your vehicle was damaged as a result of the repossession, you will have to file a separate claim with the settlement administrator. The companies may require that you furnish proof (such as a sworn affidavit or evidence) that the damage to your vehicle was a direct result of the repossession.
3. I had a loan with CashPoint or Loan Max prior to November 24, 2007, and was a District of Columbia resident at the time of my loan. Why am I not eligible under the Settlement?
The District of Columbia law that makes its interest rate cap of 24 percent APR applicable to loan transactions with District residents that take place outside the District of Columbia only went into effect on November 24, 2007. Therefore, the 24 percent cap on interest does not apply to loans that occurred before November 24, 2007.
4. I was a resident of Virginia or Maryland at the time my loan was made. Why am I not eligible under the Settlement?
These Settlements are between the Government of the District of Columbia and CashPoint and Loan Max, pursuant to a local District of Columbia law. As such, our jurisdiction is limited to those borrowers who were residents of the District of Columbia at the time the loans were made.
5. I was a resident of the District of Columbia at the time my loan was made but have since moved out of DC. Am I eligible under the Settlement?
Yes, if the loan was made or issued on or after November 24, 2007.
6. How do I find out if I am eligible for a refund from CashPoint and Loan Max?
Eligible borrowers will be sent claim forms and releases in the mail by mid-June, 2009.
7. Why do I have to fill out a claim form and release?
Under the terms of the Settlement Agreements, both CashPoint and Loan Max are required to explain the purpose of the settlements and who is eligible to receive a payment or refund. The release simply allows CashPoint and Loan Max to be assured that once they issue a full refund of interest that was overpaid by you, that they will not be liable for any further compensation to you resulting from such loans.
If you want or need any legal advice regarding whether you should sign the release, you will need to contact a private attorney. The Attorney General’s office cannot provide you with legal advice.
8. Will I be eligible for a refund from CashPoint or Loan Max if I do not complete the claim form and/or release?
No.
9. Who should I contact to find out if I will qualify for a refund or update my address?
All eligible District residents who are CashPoint customers can call 1-888-EZ-BUCKS (1-888-392-8257).
10. When will I get my refund?
Settlement administrators have been hired by CashPoint and Loan Max to handle the claims processes. Claim forms should go out to eligible borrowers by mid-June 2009. Within two weeks of receipt of a completed claim form and release, the Settlement Administrator should issue your refund.
11. Why will it take that long to get the money?
The settlement administrators that have been hired by CashPoint and Loan Max to handle the claims processes will need to identify borrowers from Loan Max and CashPoint’s databases and current addresses located. Also, materials must be developed, printed, and mailed out. Coordinating all these different components takes time.
DC Government Resource Center