KGUN 9 On Your Side, Tucson News, Weather & SportsQuick Cash lender, faces hefty lawsuit

Quick Cash lender, faces hefty lawsuit

Payday lenders have been under scrutiny for years here in Arizona, accused of taking advantage of people, desperate for money. Now one of those companies is facing charges and a $5 million in fines.

People all over the state who were desperate for money, showed up at several Quick Cash stores, and got it according to the Arizona Attorney General's Office.

It happened in cities like Yuma, Bullhead City, Thatcher and Laughlin. But when they couldn't pay it all back, Quick Cash, tried to take them to court in Tucson.

Vincent Rabago, the Arizona Assistant Attorney General said, "It's in direct violation of Arizona law."

He says, Quick Cash should have filed their claims in the cities where the money was borrowed. But by suing customers in far away places, the Attorney General's Office says, they couldn't afford legal fees to travel to Tucson, allowing quick cash to prevail and send the customer to collections.

The AG's office also believes, the company was deceptive by advertising that they abide by Arizona law, and displaying a CFSA seal, claiming they follow "best practices" in the lending industry.

"... they essentially made a mockery of our justice court system, and it was outrageous", said Rabago.

Quick Cash responded by saying: "We have always sought to comply with Arizona state law, and were unaware of this administrative issue. We are cooperating with the Attorney General's office and are investigating the issue ourselves."

Diane Robles of Tucson had to file bankruptcy after being sued by another payday lender several years ago. She sometimes borrowed online, and worries that the web will give some lenders the upper hand.

"Those companies are doing the same things and filing claims or lawsuits against those people, and often times those people are in a different state across the us, and there's not a whole lot the borrower can do", said Robles.

The Attorney General's office filed a restraining order against Quick Cash. It was granted.

Until the case with the state goes to court, Quick Cash will not be able to file any more lawsuits in the wrong court location.

And on the cases in which they have, they will not be able to move forward until the current lawsuit is resolved.