CHARLESTON — West Virginia Attorney General Patrick Morrisey has announced a $150,000 settlement with Ohio payday lender Cashland to resolve allegations that its business practices violated the state’s Consumer Credit and Protection Act.
The settlement, entered into Feb. 1, requires Cashland to pay $150,000 and ensure its practices comply with state law. It stemmed from an investigation into whether Cashland engaged in unlawful debt collection.
“This settlement represents another step forward for consumers,” Morrisey said in a statement. “It’s a good day when you can bring money back into the state and change how systems and practices work for West Virginia consumers.”
The Attorney General’s Consumer Protection Division alleged Cashland repeatedly made unwanted telephone calls to persons who consumers listed as references on their credit applications. Those calls were made without a legitimate reason, the state alleged.
Cashland, as part of the settlement, denied violating any aspect of the Consumer Credit and Protection Act or other laws.
The settlement requires Cashland to permanently refrain from contacting any reference or third party listed on a consumer’s credit application with the limited exception of reaching out to the consumer’s employer for a “permissible purpose,” such as obtaining contact information to initiate wage garnishment.