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The US Sun
Americans can claim one-time payment from $65 million interest rate settlement – but it depends on which state you live
By Dan J. O'Connor,
2024-08-02
AMERICANS can get payments from a major interest rate settlement.
Big Picture Loans, a private money lender , is paying out big bucks after allegations it charged excessive interest rates.
The company is known for offering thousands in loans to people with bad credit and then charging high interest rates.
Those high rates can make the loan very difficult to pay back.
It charges annual percentage rates of over 400%, according to Credit Karma .
The site says the company “should be avoided if at all possible.”
“The loans are expensive, and it could be difficult to dig your way out of debt,” it said.
After allegations that the company’s rates violated several state laws, it’s now paying millions.
Big Picture has denied wrongdoing but settled to avoid the cost of further litigation.
The company asserts that it did not violate laws because it is based on a Native American reservation, which has its own laws. The company is operated by people not affiliated with any Tribe.
Those who received loans under the company’s other names, Castle Payday or Red Rock Tribal Lending, can also qualify for money.
WHO GETS PAID
The $65 million settlement provided varying amounts of money to people who took out a loan with Big Picture.
If you did not make any payments on your loan, you will not receive money.
You can only receive cash if you pay back more than the principal amount of the loan while living in the following states.
Arizona
Arkansas
Colorado
Connecticut
Idaho
Illinois
Indiana
Kansas
Kentucky
Massachusetts
Minnesota
Montana
New Hampshire
New Jersey
New Mexico
New York
North Carolina
Pennsylvania
Ohio
South Dakota
Vermont
Virginia
Wisconsin
However, in other states, you only qualify if you paid above your state’s legal interest limit.
Those states are:
Alabama
Alaska
California
Delaware
Florida
Georgia
Hawaii
Iowa
Louisiana
Maine
Maryland
Michigan
Mississippi
Missouri
Nebraska
North Dakota
Oklahoma
Oregon
Rhode Island
South Carolina
Tennessee
Texas
Washington
West Virginia
Washington, DC
Wyoming
Check with your individual state’s government to see what the limit is.
In the two states, those who paid the high interest rates were out of luck.
Nevada and Utah have no limit on interest rates.
If you qualify, you don’t need to file a claim—if the settlement is approved, payments will be sent automatically.
To opt out of the settlement, you must mail a request postmarked by August 19.
Class action lawsuits offer groups of people, or 'classes,' a way to band together in court.
These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.
When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit.
Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money.
These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.
Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.
MORE MONEY
Class actions are a common consumer protection tool.
Visa and Mastercard are settling for $5.6 billion over the pair of companies’ fees .
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