Without a doubt about RUBY v. CASHNET INC
Determined: 21, 2011 april
Under previous Code В§ 6.1вЂ“459(6)(i) (which can be now codified at Code В§ 6.2вЂ“1816(6)(i)), a payday lender is prohibited from вЂњrefinanc[ing], renew[ing] or extend[ing] any pay day loan.вЂќ 1 In this situation, we ought to decide whether a payday loan provider violates this supply whenever it generates that loan up to a debtor just after the debtor repays in full a past loan. We hold so it does.
On a basis that is monthly March 2005 through November 2007, Wilma A. Ruby joined into a complete of 33 payday-loan agreements with Cashnet, Inc., d/b/a money Advance Centers (Cashnet). The total amount of each loan increased in the long run, beginning at $200 and reaching $500, the most allowed beneath the Act. Code В§ 6.2вЂ“1816(5). a loan/repayment that is typical happened the following:
On April 3, 2007, Wilma Ruby paid $575.00 in money to Cashnet.
Straight away thereafter on 3, 2007, Wilma Ruby and Cashnet entered into another Payday Loan AgreementвЂ¤ Under the agreement Cashnet loaned $500.00 to Wilma Ruby april. Wilma Ruby would be to repay the $500.00 and also a 15% finance cost of $75.00 (for a complete of $575.00) to Cashnet by might 3, 2007.
May 3, 2007, Wilma Ruby paid $575.00 in money to Cashnet.
Instantly thereafter may 3, 2007, Wilma Ruby and Cashnet joined into another pay day loan AgreementвЂ¤ beneath the agreement Cashnet loaned $500.00 to Wilma Ruby. (more…)