The Story of Ms. Opie
Ms. Opie asked to borrow one thousand dollars ($1000.00) but was told that she could only borrow a maximum of eight hundred dollars ($800.00).
In addition to the three hundred sixty percent annual interest (360%) rate, Ms. Opie was also immediately assessed a two hundred dollar ($200.00) "Cash Advance Fee."
As a part of the transaction, Ms. Opie pledged her 1993 Ford Explorer that had a value of approximately three thousand dollars ($3000.00).
Ms. Opie fell behind on her payments to Loan Max and Loan Max refused to take partial payment.
Loan Max repossessed the vehicle. Vehicle was sold on October 8, 2005 by private sale for one thousand fifty dollars ($1050.00). They sent her a letter telling her she now owes $413.
She is alleging:
- Violations of the Truth in Lending Act (failure to properly disclose the 25% cash advance fee).
- Violations of the Virginia Consumer Finance Act (Small Loan Act). She alleges that the lender is not exempt from the Act because the loan doesn’t meet Virginia’s open-end loan requirements so Loan Max is in violation for being unlicensed, charging a 25% cash advance fee, and charging more than 36% APR.