West Virginia Payday Loans

Payday loans can be the only alternative for some people with limited income who need immediate financial assistance.  These people typically do not have the time, or in some cases, the resources to go to a bank for help.  These facilities are a way for them to get cash fast.

Unfortunately, for those who live in West Virginia they will have to come up with another alternative than driving to a payday location.  Payday loans are, and always have been, illegal.  But that doesn't mean that people have not found ways around the law.  They will typically drive across the border to neighboring Virginia or go online for assistance.

As early as 2005, the FDIC issued a revised guidance against lenders who were still conducting payday loan business to states where it was illegal.  Because of the heightened awareness of what was going on they suspended these programs from their supervised lenders.   By July 2006, the last of their affiliated lenders closed their doors in the state.

In May of 2007, West Virginia Attorney General Darrell McGraw successfully won a lawsuit filed against a chain of locations that was conducting business in the state.  According to the terms of the agreement, they had to pay $200,500 to the state for the purpose of consumer protection.  There are an additional $22,000 paid to approximately 400 people who had paid interest to these locations after May 31, 2006.  As further punishment, approximately $616,000 in loans that had defaulted by 2,700 borrowers was forgiven.

In March 2009,  McGraw intensified his assault on payday lenders who were trying to skirt the issues and conduct business within the state.  He filed, and won,  lawsuits against 12 internet facilities that were conducting these loans in an attempt to prevent them from doing business.  Since they are not allowed brick and mortar locations they have turned to the internet for their leads.  Another way that they infiltrate the population is by a partnership with state and national banks through internet banking.

All total, Attorney General McGraw's office has been responsible for conducted more than 75 investigations and complied a total of almost $1.8 million dollars in cash refunds and canceled debts for over 6,600 residents.