State orders pay-day lender to shut down

A West Michigan pay-day loan company was fined $50,000 and ordered to end all unlicensed deferred presentment activity.
Tribune Staff
Oct 31, 2011

 

The state’s Office of Financial and Insurance Regulation fined Pay Day Now LLC last week. An OFIR investigation found evidence — including customer comments and blank deferred presentment transaction agreements — that Pay Day Now was conducting deferred presentment transactions without a license, a violation of the state’s Deferred Presentment Service Transactions Act.

Pay Day Now’s owner, Scott Robison, refused to allow an OFIR investigator beyond the business’ reception area and refused to allow the investigator access to business records, according to the state agency.

Robison was part-owner of a previous licensee, Cash Now XXXII, also in Grand Rapids. That license was revoked in April for multiple violations of the same law.

“Pay Day Now’s conduct clearly poses a threat to the financial well-being of Michigan consumers,” OFIR Commissioner Kevin Clinton said in the Oct. 27 announcement. “Our agency will continue to ensure that the law regulating the state’s deferred presentment companies is strictly enforced.”

Michigan consumers who have a complaint or questions regarding a payday lender should call OFIR toll-free at 877-999-6442 or visit www.michigan.gov/ofir.

 

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