Vermont Cracks Down On Payday Lenders
Several national companies that offer small loans at high interest rates have agreed to refund money to more than one thousand Vermont borrowers. The agreement is the result of a lawsuit brought by Vermont Attorney General Bill Sorrell. Vermont is one of 15 states that restrict payday loans, but that hasn’t stopped dozens of unlicensed national lenders from offering the products. Sorrell says settlements reached with three of the lenders and one payment processor will result in refunds exceeding $1 million for borrowers and will stop the companies from issuing any more loans in the state. Vermont is the only state with a law addressing the third party processing companies.