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Alleged Harassment Expensive for payday advance Company
A payday advance company in Washington is paying a hefty price after customers filed a class-action lawsuit against the company for harassment.
The company settled the lawsuit out of court, which means they do not admit to any wrongdoing on their part. However, the company must fork over a total of $2.5 million to be split among 10,701 plaintiffs. payday advance
Allegations
Pacific Financial Holdings Inc. is based in Federal Way, Washington, and owns Loan Ex. According to The Spokesman-Reviewnewspaper in nearby Spokane, Misty Schleve accused Loan Ex of making harassing phone calls after she was late repaying $200 for a payday advance.
According to Schleve, she got a barrage of phone calls from the company in which they accused her of being a thief and used profanity. She says they also contacted her relatives regarding her debt. payday advance
Settlement
The terms of the settlement dictate that the company must pay all customers who may have been subjected to similar treatment. This amounts to every customer who defaulted on payday advancesbetween Aug. 18, 2001, and Aug. 18, 2005.
The suit was filed in 2005, and a county judge approved the settlement this month, on Feb. 18. The company has until May 1 to notify all eligible recipients in the suit. payday advance
Case closed
After the suit was certified as a class action, the company appealed to the Washington Supreme Court, which would not hear the case. The case was sent back to the county court, and the company agreed to the settlement.
The case didn’t make it to federal court because “an arbitration clause in the payday advance agreement could have trumped a class-action lawsuit,” according to the Spokesman-Review.
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