Syracuse (WSYR-TV) - Two payday lenders are being forced to pay back thousands of customers here in New York who they allegedly ripped off. According the Attorney General, CashNet and TeleCash lured in customers by offering quick cash, but they weren’t upfront about the massive interest rates attached to the money.
They will have to pay $5 million in restitution to the customers they mislead. Most of the 14,000 victims across the state say they heard about these companies through TV, radio or online advertisements.
The AG’s office says TeleCash and CashNet disguised their payday loans to look like they were being made by a bank in Delaware. Unlike New York, Delaware does not limit the amount of interest that can be charged on a loan, so some customers were paying up to 500%.
If you dealt with either of these companies, you’ll be receiving restitution. The checks will range from $10 to $4500 dollars depending on how much interest you paid.
If you think you are owed, call 1-800-771-7755. You’ll be sent a claim form to fill out to determine whether you’re eligible and exactly how much you’ll get.
If you’re desperate for cash, payday loans are not a good answer. It’s actually better for you financially to take a cash advance on your credit card than to take out a payday loan.