The Simon Law Firm has filed a class action against payday lender QC Financial Inc., which does business as Quik Cash at numerous locations throughout Missouri. The class-action suit alleges that Quik Cash has evaded complying with Missouri financial laws and regulations in making its payday loans to Missouri consumers. According to Erich Vieth, an attorney with The Simon Law Firm, payday loans are the “financial equivalent of crack cocaine–they constitute a quick financial fix that hook borrowers for long periods, thanks to interest rates that exceed 400%.”
The suit alleges that Missouri statutes require lenders to “consider the financial ability of the borrowers to repay the loan,” but that Quik Cash failed to do this. The suit also alleges that Quik Cash has been renewing loans more than six times in violation of Missouri law, as well is charging more than 75% of the original loan amount in interest and fees, also in violation of Missouri law. The plaintiff in this class-action, DeQuae Woods, is a single mother of two from Florissant. According to John Campbell, also an attorney with The Simon Law Firm, Mrs. Woods went to Quik Cash after seeing a television commercial and proceeded to borrow $450 at an interest rate of 469% in order to assist with the closing costs of her home loan. The class-action lawsuit seeks actual damages to be paid back to the borrowers, as well as punitive damages. The suit also seeks a permanent injunction requiring Quik Cash to comply with all financial laws and regulations of the State of Missouri.