Vermont Business Magazine Advantage Payment Systems, LLC, a Nevada company that processes electronic payments, will pay $22,000 to settle claims that the company violated Vermont consumer protection laws. “Vermont currently has the strongestlawin the nation to combat predatory high-interest, unlicensed loans – loans that historically were called payday loans,” said Attorney General William H. Sorrell. “This is another settlement confirming that payment processors and others who assist illegal lenders are held responsible for the harms caused by illegal loans.” More information on illegal lending and the Attorney General’s efforts can be foundhere.
Between 2012-2013, Advantage Payment Systems processed debits from over 500 consumer bank accounts in Vermont on behalf of at least 36 online lenders of high-interest loans. The annual interest often exceeded 100-300% even though Vermont law prohibits annual interest above 24%. None of the 36 lenders had a license to make loans in Vermont. As of September 2013, Advantage Payment Systems ceased processing payments in Vermont involving any online consumer loans.
Under the terms of thesettlement, Advantage Payment Systems will pay $22,000 to the State of Vermont, of which $12,000 will be paid to the Vermont Financial Literacy Commission Fund to assist improving the financial literacy and financial capability of Vermont’s citizens. The amount to the Fund represents the amount Advantage Payment Systems debited from a large number of bank accounts for which it had no personal contact information for the Vermont consumer.
Consumers who have borrowed from any lender notlisted as licensedwith the Vermont Department of Financial Regulation canfile a complaintwith the Attorney General’s Consumer Assistance Program, or mail a complaint to “Consumer Assistance Program,” 146 University Place, Burlington, VT 05405.
Vermont AG: Mar 9, 2016