District Files Suit Against Loan Max

Attorney General Peter J. Nickles announced today that the District has filed suit against Loan Max, a money lender that issues consumer loans by securing a motor vehicle title.  The lawsuit is part of an invigorated effort by the Attorney General’s office to increase enforcement of consumer protection laws in the District.

“Just like the CashPoint lawsuit that we filed two weeks ago, I will fight vigorously to make sure that Loan Max and any other lender that has loaned money to District consumers at unconscionable and illegal interest rates returns all ill-gotten gains to DC consumers based upon these loans and comply with DC law with respect to any future loans, “said Attorney General Nickles.

The District’s suit alleges that in making loans to DC consumers, Loan Max charged interest rates above 300 percent per year.  Such interest rates are well-above the maximum amount allowed under DC law, which is 24 percent per year.  The suit also alleges that when DC consumers were unable to make repayments, Loan Max in some instances would employ illegal tactics in an effort to collect payment, including abusive collections practices and unauthorized repossession of consumers’ motor vehicles.

Attorney General Nickles encourages residents of the District of Columbia who have had any dealings with Loan Max, CashPoint, or any other lender that has loaned them money at interest rates exceeding 24 percent per year to contact his office’s Consumer Hotline at (202) 442-9828, or e-mail consumer.protection@dc.gov.