About the World Finance Lawsuit
World Finance is a company that provides consumer loans in the United States and other countries. The company has been the subject of multiple lawsuits and legal actions related to its business practices.
World Finance is a company that provides consumer loans in the United States and other countries. The company has been the subject of multiple lawsuits and legal actions related to its business practices. This article will examine the cases and allegations against World Finance and provide an overview of the company’s history and business practices.
History of World Finance
World Finance was founded in 1962 in South Carolina. The company provides installment loans, repaid over time with a fixed number of scheduled payments. The loans are typically small amounts, ranging from a few hundred to a few thousand dollars, and are designed to help people with limited credit access to funds.
World Finance Lawsuits and Allegations
World Finance has been the subject of several lawsuits and legal actions over the years. Here are some of the most notable:
Allegations of Unlawful Business Practices
In 2012, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit against World Finance for alleged unlawful business practices. The CFPB accused the company of misleading customers about the cost of loans and the amount of interest they would be charged. The lawsuit also alleged that the company made loans to customers who could not afford to repay them and charged excessive fees. World Finance settled the case for $21 million and agreed to change its business practices.
Allegations of Discrimination
In 2013, World Finance was sued by the Department of Justice for alleged discrimination against African-American and Hispanic borrowers. The lawsuit alleged that the company charged higher interest rates to these borrowers than white borrowers with similar credit histories. World Finance settled the case for $21.7 million and agreed to change its lending practices.
Allegations of Deceptive and Unfair Practices
In 2017, World Finance was sued by the Massachusetts Attorney General for alleged deceptive and unfair practices. The lawsuit alleged that the company made loans with interest rates exceeding the state’s legal limit and charged excessive fees. The lawsuit also alleged that World Finance needed to disclose the terms of its loans to customers adequately. The case was settled for $5.5 million, and the company agreed to change its lending practices.
Allegations of Predatory Lending
In 2018, World Finance was sued by the California Attorney General for alleged predatory lending practices. The lawsuit alleged that the company made loans to customers with interest rates as high as 224%, well above the state’s legal limit. The lawsuit also alleged that the company made loans to customers who could not afford to repay them and charged excessive fees. The case is ongoing.
In conclusion, World Finance has faced multiple lawsuits and legal actions related to its lending practices. The company has settled some of these lawsuits and faces ongoing legal challenges. Suppose you consider loaning with World Finance or any other lender. In that case, it is essential to research the lender’s reputation and understand the terms and conditions of the loan entirely. If you believe a lender has engaged in unlawful or unfair practices, contact an attorney specializing in consumer protection law.
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