Attorney general sues local car title lender
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The Associated Press
Published: May 8, 2008
RICHMOND - Attorney General Bob McDonnell has filed a lawsuit against operators of a Charlottesville-based car title lender for violating Virginia’s Consumer Finance Act.
McDonnell filed suit in Richmond Circuit Court on Thursday against NJG Inc. and Nicholas Gianakos, which operate Instant Cash Title Loans.
The law allows lenders to charge up to 12 percent annual interest. Car title lenders are exempt if they operate as open-end credit, which allows them to charge unlimited interest as long as they give the borrower 25 days to repay the loan with no charges.
McDonnell claims Instant Cash operated as closed-end credit, which falls under the 12 percent cap. He asks that the company be forced to repay the principle and interest on the illegal loans.
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