The quickly growing „payday” lending industry, which charges customers interest levels of 500 per cent or maybe more for short-term loans, faced its very first major crackdown in Florida on Thursday.
Their state charged Jeffrey C. Swank, owner regarding the money Cow string, and four associates with racketeering, usury and other crimes, and seized $565,743 from business and individual bank reports.
The company that is tallahassee that has 15 shops in North and Central Florida, is certainly one of lots of check-cashing chains which have sprung up all around the state to help make one- or two-week pay day loans at huge interest levels.
The state says Cash Cow defrauded car owners who used their car titles as collateral to borrow money in addition to charging usurious rates for payday loans.
Statewide Prosecutor Melanie Ann Hines filed the costs in Leon County Circuit Court against Swank, 36; Paul J. Shovlain, 58; Christie W. Hughes, 29; Reid E. Smith III, 37; and Michelle Smith, 35. Swank, whom faces 145 fees, ended up being booked in the Leon County Jail and released. Others are anticipated become arrested on the next days that are few.
The costs will be the outcome of an investigation that is joint the Florida Department of Banking and Finance as well as the Florida Highway Patrol. Read More