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 Posted: Sun Jul 08, 2007 8:21 pm Subject: Texas AG Shuts Down PD Lender |
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Not sure where to post this, if this is the wrong forum, maybe one of the mods will remove it to where it belongs.
| Quote: | Friday, June 29, 2007
Attorney General Abbott Secures Judgment to Shut Down Unlicensed Payday Lender
'Advance Internet' owner John Gill Jr. prohibited from making deceptive loans
EL PASO – Texas Attorney General Greg Abbott secured a court judgment against Advance Internet, also known as Texas Advance Internet, an unlicensed payday lender. The court judgment prohibits the El Paso-based company from continuing its unlawful predatory lending activities.
According to court documents, Advance Internet’s owner, John A. Gill Jr., used the guise of on-premises Internet access and “instant cash” to lure consumers into a payday lending scheme. Advance Internet’s customers, many of whom were military families, were essentially tricked into entering into fraudulent high-interest contracts.
“Texans will not tolerate predatory schemes to defraud military families,” Attorney General Abbott said. “With this judgment, these defendants are prohibited from continuing their unconscionable scheme. The Office of the Attorney General will continue to aggressively enforce the law.”
In 2006, Attorney General Abbott charged the defendants with violating numerous provisions of Texas consumer finance laws, including provisions requiring lenders to obtain proper licenses before making loans. The laws also presume that usurious interest contracts like those written by Advance Internet are null and void.
The company tricked consumers into schemes with interest rates as high as 782 percent for short-term cash advance loans. The result was an unending cycle of debt for Advance Internet customers. Texas Advance Internet maintained offices in El Paso, Coryell, Bell and Bexar counties, all counties with military bases in close proximity.
Gill’s Internet “rebate” program was a subterfuge used to hook consumers into debt. Customers who signed up were given an immediate $100 “rebate” that was followed by Advance Internet making monthly withdrawals from consumers’ bank accounts. These withdrawals continued until the amount, further burdened by exorbitant interest, was repaid. Consumers who elected to pay off the “rebate” early were told they would be assessed a “termination fee” equal to the original amount of the rebate. |
http://www.oag.state.tx.us/oagNews/release.php?id=2081
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LawStudent
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Joined: 04 Apr 2007
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| Posted: Sun Jul 08, 2007 8:45 pm Subject: |
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i had something simuler happen to me with american web cash.. i signed up with them got 300 dollars immedialty.. they keep overdrewing my account finaly i had my account closed and they kept hiting it after it was closed 6 mounths later i got a letter from attorney fredrick kelly for a bill of 2700 dollars from american webcash.. i sent him a vaidation letter and he sent all the debt attempts he made.. i was paying him and about to pay my mounthly payment until i saw this form by law student.
american webcash is not licnesed in minnesota and i dont know where there located.. is there a possibly way i can deal with these bozos
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perry968
Joined: 18 Jun 2006
Posts: 238
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| Posted: Sun Jul 08, 2007 8:46 pm Subject: |
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Gill was sued in the past by other states regarding his efforts. To avoid prosecution he came up with this scheme stashing all his dough!
Follow this link!http://www.johnallengilljunior.info/Contents.htm
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Roadwarrior
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| Posted: Mon Jul 09, 2007 4:38 am Subject: |
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Thanks for the info, LawStudent and Roadwarrior!!!
Perry, I am not familiar with MN payday loan laws but hopefully someone will see this and be able to give you an answer on that.
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Sassnlucy
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