For Release: Sept. 13, 2007
Contact: J. Tucker Martin or David Clementson
Email: tucker.martin@oag.state.va.us or dclementson@oag.state.va.us
Phone: 804-786-2071
McDonnell Announces $1 Million Settlement with Northern Virginia Auto Title Lender
Alexandria-Based CashPoint to Provide Relief to 904 Borrowers
RICHMOND – Attorney General Bob McDonnell has reached a settlement with CashPoint, an auto title lender operating in Northern Virginia, providing more than $1 million in relief for 904 borrowers.
The Alexandria-based lender has four stores, located in Alexandria, Manassas, Stafford and Tysons Corner.
The alleged violations occurred between March 2006 and April 2007, during which CashPoint charged its borrowers interest rates that exceeded statutory limits. The Consumer Finance Act generally prohibits unlicensed lenders from charging and receiving interest in excess of 12 percent per year on consumer loans.
CashPoint generally makes loans to consumers which are secured by a motor vehicle title. CashPoint is the tradename for Dominion Management Services, Inc.
“I am pleased we were able to reach a fair and reasonable agreement with CashPoint that will provide refunds and other relief to more than 900 affected Virginians,” McDonnell said. “We appreciate their cooperation with us throughout our investigation.”
The settlement includes the following key terms regarding future loans and title loans made by CashPoint during the period in question:
Consumers who have questions about the settlement may contact CashPoint toll-free at (888) 281-1005.
The civil settlement is in the form of a Consent Judgment that has been filed with the Richmond Circuit Court for approval.
