Va AG sues online payday lender

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Associated Press

Posted on July 19, 2013 at 12:00 PM

Updated Friday, Jul 19 at 12:00 PM

RICHMOND, Va. (AP) — Virginia Attorney General Ken Cuccinelli is suing an Internet payday lender alleging it is making illegal loans to state consumers.

Cuccinelli's office filed a lawsuit against Jupiter Funding Group for offering payday loans without a valid state license from state regulators.

Without a license, lenders can charge no more than 12 percent in annual interest on a loan.

But the attorney general's office says that according to the company's terms and conditions, the interest rates on its payday loans ranged anywhere from 438 percent to 1,369 percent annually.

The lawsuit seeks to stop Jupiter Funding to comply with state law, reimburse certain interest paid and pay civil penalties.

Jupiter Funding did not immediately respond to a telephone message left by The Associated Press. It lists addresses in Delaware and Kansas.

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