On Monday, May 16, Hennepin County District Court Judge Thomas M. Sipkins, issued an order denying defendant payday lender, PayDay America, Inc.’s motion to dismiss a class action filed by Teske Katz Kitzer & Rochel on behalf of a class of consumers who allege that PayDay America sold them high-cost loans in violation of Minnesota law governing consumer credit and regulated lending. The Court’s order is available here.
In particular, the Plaintiffs’ Class Complaint alleges that Payday America, Inc. charged certain fees for payday loans in excess of the maximum rates allowed for closed-end loans under state law, failed to meet certain disclosure requirements with respect to the calculated annual percentage rate, and engaged in prohibited debt collection practices in connection with the subject loans.
Teske Katz Kitzer & Rochel attorney Marisa Katz briefed and argued the case in opposition to Payday America Inc.’s motion to dismiss. Ms. Katz noted, “This victory is significant for consumers across the state of Minnesota, who are all-too-often trapped in cycles of debt, often as a result of predatory payday lending practices.”
The firm looks forward to prosecuting this case forward and its continued representation of Minnesota consumers. If you have questions about the Payday America case, or believe that your consumer rights have been violated contact us today for a confidential consultation.