Minn. AG sues loan companies over rates, licenses
Three Internet companies offering consumers short-term loans are the target of lawsuits by Minnesota Attorney General Lori Swanson.
Swanson on Wednesday sued in state court, accusing the payday loan companies of operating without proper Minnesota registration and for charging rates deemed excessive under state law.
The lawsuits seek penalties and restitution, but Swanson didn't know how many consumers might be affected.
The defendants are Eastside Lenders of Delaware, Global Payday Loan of Utah and Jelly Roll Financial of Virginia.
Eastside argued in a letter to Swanson that it is exempt from Minnesota's law. The other two couldn't immediately be reached for comment, with a supervisor Jelly Roll's call center in Costa Rica telling a reporter to mail questions.
(Copyright 2010 by The Associated Press. All Rights Reserved.)
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