The Virginia State Corporation Commission has entered into a settlement agreement for $38,000 with payday lender Allied Cash Advance for violating multiple sections of the state’s payday lending laws. The settlement is the second large case the state regulator has pursued against the industry this year. Each violation of the state payday laws can bring a $1,000 fine. The state said Allied violated six sections of the law, but did not specify the number of alleged violations. Allied was sued last year in Virginia by a borrower who taped a call of an Allied employee pretending to be with law enforcement and threatening arrest for an overdue loan, which is illegal in the state. Allied has 27 locations in the state, including one in Hampton, one in Newport News and five in South Hampton Roads . read more

Filed in: Cash Day Advance