Americans can claim one-time payment from $65 million interest rate settlement – but it depends on which state you live

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.

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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.

More details are available on the settlement website .

What's a class-action settlement?

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 .

In Oregon , a grocery store is paying millions over high fee allegations.

WinCo will pay $3.3 million over the claims.

Americans can claim $4,400 from a data breach settlement .

Some can get $5,000 after medical data leaked .