Summary of the Settlement Agreements with CashPoint and Loan Max
Prohibits Doing Business with District Consumers
Because both Loan Max and CashPoint’s business models are premised on charging interest rates greater than DC’s cap of 24 percent APR, they have both agreed to stop making new loans with District residents. Therefore, if you are District resident, you will be ineligible to obtain a new loan from either CashPoint or Loan Max.
Both Companies to Provide a Combination of Over $1 million in Consumer Restitution and Payment to the District’s Consumer Protection Fund
The companies have agreed to set up escrow funds in order to make sure that all Eligible Consumers who were customers of theirs will be provided full refunds as a result of these settlements. In addition, a small portion of this amount will go to the District’s Consumer Protection Fund to be used for consumer education and other investigations.
Refunds and/or credits to all Eligible Consumers
If you entered into a loan with CashPoint or Loan Max at any time on or after November 24, 2007, and you were a District resident at the time of the loan, you will be eligible for a refund of all payments toward interest that you have already made (“Eligible Consumer”). For example, if you took out a loan for $500 and repaid $700 ($500 principal and $200 interest), you will be eligible for a refund of $200.
Repossessed vehicles to be returned to Eligible Consumers
If you are an Eligible Consumer, and your motor vehicle was repossessed by Loan Max or CashPoint, you will have your vehicle returned to you at no cost if such vehicle has not been sold at auction. You will be notified whether this applies to you.
If you are an Eligible Consumer, and your motor vehicle was repossessed by Loan Max or CashPoint, and such vehicle has been sold at auction, you will be compensated for the full amount of the proceeds from the sale of your vehicle.
DC Government Resource Center