Check 'n Go Sues 'Whistleblower'
as reported by the Cincinnati Enquirer
I guess when you charge annual interest rates of almost 400%, you'd rather keep it a secret. Here's the story as reported by the Cincinnati Enquirer.
WASHINGTON - Mason-based Check 'n Go filed a lawsuit in the Superior Court of Washington, D.C., on Tuesday against a former employee who spoke out against the company's business practices at a news conference in Washington last week.
Michael Donovan, the company's former director of operations for the District of Columbia, told reporters last week that Check 'n Go encourages its employees to recruit low-income and minority customers and try to keep them from paying off their loans.
Check 'n Go offers so-called payday loans, which are short-term cash advances meant to help people make it from paycheck to paycheck. The interest rates and late or rollover fees on these loans are typically much higher than what banks charge.
"The average Check 'n Go customer in the District (of Columbia) is continuously in debt to the company for at least a year, and it's not uncommon to see customers trapped for several years," Donovan had said. "The repeat borrower is vital to our business model.
"Check 'n Go alleges in its lawsuit that Donovan stole confidential business information about the company in violation of an agreement he signed not to disclose such information. The lawsuit also alleges that Donovan misled the company into hiring him by using a false Social Security number and lying about his criminal history.The company is seeking unspecified damages from Donovan.
Donovan did not return a phone call seeking comment on Tuesday.In a press release, the company accused Donovan and two other former employees who also spoke at last week's news conference, of conspiring with the Center for Responsible Lending to tarnish the company and the entire payday loan industry.
"We are outraged at the attacks on Check ‘n Go by the former employees and the CRL. It’s unfortunate we have to take this route, but we cannot allow fabrications like this to go unchallenged, " said Doug Clark, Chief Operating Officer for Check ‘n Go.
The Washington, D.C., City Council was expected to vote Tuesday on a bill to cap payday loans at 24 percent, the same rate charged by banks and credit unions.
The Ohio Coalition for Responsible Lending is pushing similar legislation in Ohio.
I guess when you charge annual interest rates of almost 400%, you'd rather keep it a secret. Here's the story as reported by the Cincinnati Enquirer.
WASHINGTON - Mason-based Check 'n Go filed a lawsuit in the Superior Court of Washington, D.C., on Tuesday against a former employee who spoke out against the company's business practices at a news conference in Washington last week.
Michael Donovan, the company's former director of operations for the District of Columbia, told reporters last week that Check 'n Go encourages its employees to recruit low-income and minority customers and try to keep them from paying off their loans.
Check 'n Go offers so-called payday loans, which are short-term cash advances meant to help people make it from paycheck to paycheck. The interest rates and late or rollover fees on these loans are typically much higher than what banks charge.
"The average Check 'n Go customer in the District (of Columbia) is continuously in debt to the company for at least a year, and it's not uncommon to see customers trapped for several years," Donovan had said. "The repeat borrower is vital to our business model.
"Check 'n Go alleges in its lawsuit that Donovan stole confidential business information about the company in violation of an agreement he signed not to disclose such information. The lawsuit also alleges that Donovan misled the company into hiring him by using a false Social Security number and lying about his criminal history.The company is seeking unspecified damages from Donovan.
Donovan did not return a phone call seeking comment on Tuesday.In a press release, the company accused Donovan and two other former employees who also spoke at last week's news conference, of conspiring with the Center for Responsible Lending to tarnish the company and the entire payday loan industry.
"We are outraged at the attacks on Check ‘n Go by the former employees and the CRL. It’s unfortunate we have to take this route, but we cannot allow fabrications like this to go unchallenged, " said Doug Clark, Chief Operating Officer for Check ‘n Go.
The Washington, D.C., City Council was expected to vote Tuesday on a bill to cap payday loans at 24 percent, the same rate charged by banks and credit unions.
The Ohio Coalition for Responsible Lending is pushing similar legislation in Ohio.
posted by Scott @ 12:48 AM
0 Comments:
Post a Comment
<< Home