Settlement with GPGL comes on the heels of a $5.9M settlement with the lender, Community Loans of America
HARRISBURG – Attorney General Michelle Henry today announced a settlement with GPGL Holdings, a Florida-based lead generator that allegedly used fake physical addresses and customer reviews to push Pennsylvania borrowers into high-interest loans with Community Loans of America.
The settlement is the latest action taken by the Office of Attorney General against auto title loan lenders that prey on Pennsylvanians typically facing financial hardships. In January, the office reached a $5.9 million settlement with Community Loans of America (CLA, which did business as Delaware Title Loans) regarding unlawful loans with interest rates exceeding 300 percent.
Under the recent settlement, GPGL (which does business as Fast Money Car Title Loans) agreed to return $34,844 it received from CLA, to be used for customer restitution, in addition to paying a $10,000 civil penalty.
“Out-of-state car title lenders and their affiliates should be on notice that my office will not tolerate deceptive practices to dupe Pennsylvanians into loans with exorbitant rates,” Attorney General Henry said. “We will fight for Pennsylvanians who are preyed upon because they are facing financial difficulties.”
To attract customers for CLA, GPGL claimed to have physical offices in Pennsylvania by setting up fake locations on Google Maps and fabricating customer reviews. When consumers clicked on these fake locations and fraudulent reviews, they were directed to complete an online form or call a toll free number, which GPGL sold to Tradition Media Group, LLC. Tradition Media Group ultimately sold these leads to CLA.
CLA is a national car title lending business who allegedly made thousands of unlawful loans to Pennsylvania borrowers.
Under the prior settlement, CLA refunded consumers who fell victim to their scheme. In addition, CLA agreed to cancel and cease accepting payments on all remaining car title loans to Pennsylvanians — worth more than $3.7 million in debt cancellation.
Title loans are high-cost installment loans that require the borrower to pledge a vehicle title as collateral. Since title loans are extremely expensive, consumers typically turn to title lenders when they are at their most vulnerable — like after losing a job or facing major medical expenses. Under Pennsylvania usury and racketeering laws, title loans are effectively prohibited because title lenders generally charge interest rates far above the Commonwealth’s 25 percent annual interest limit.
The Office of Attorney General has obtained more than $4.4 million in restitution and more than $8 million in debt cancellation for Pennsylvanians who were ripped off by out-of-state car title lenders.
Consumers who believe they have been taken advantage of by a similar usurious car title lender should file a complaint or contact the Office of Attorney General at scams@attorneygeneral.gov or 1-800-441-2555.
The CLA settlement was filed in the Philadelphia Court of Common Pleas by Deputy Attorney General Jonathan Burns.
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