Judge Says $1,820 Repayment on $200 Loan 'Unconscionable' - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Judge Says $1,820 Repayment on $200 Loan 'Unconscionable'

Posted: Updated:

DOVER, Del. (AP)- A Delaware judge has ruled in favor of a former hotel housekeeper who sued a consumer loan company that demanded repayment of $1,820 for a $200 loan, a loan agreement the judge declared "unconscionable."
    
Monday's ruling by Vice Chancellor J. Travis Laster involved a loan that Gloria James of Wilmington took out in 2013 to pay for food and rent. James went to a storefront business in Wilmington called Loan Till Payday, run by Utah-based National Financial LLC.
    
She obtained what was described as a Flex Pay Loan, requiring her to make 26 bi-weekly, interest-only payments of $60, followed by a 27th payment comprising both interest of $60 and the $200 principal.
    
The total repayments added up to $1,820, equating to an annual percentage rate of more than 838 percent.

Powered by Frankly

All content © Copyright 2000 - 2017 WBOC. All Rights Reserved. For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices