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You see them all over town… businesses hawking fast cash and asking few questions to get you through until pay day.
But is it really that simple? A Kershaw County lawyer says absolutely not. Vincent Sheheen says payday lenders prey on low-income customers who are looking to get out of jams… but their financial problems end up spiraling out of control.
Sheheen says he's fighting to change that.
A lawsuit filed Thursday in Spartanburg County is the second lawsuit seeking to prove South Carolina payday lenders have broken the law by making "unconscionable loans.”
The other suit was filed last week in Horry County.
Sheheen represents one of the named plaintiffs. He says borrowers can get trapped in an endless cycle of trying to repay those loans.
The lawsuits name several payday lending companies including the nation’s largest, Advance America, based in Spartanburg.
Company spokesman Jamie Fulmer told us in a statement that Advance America has not yet reviewed the lawsuit but says, "We operate a legal and regulated business in South Carolina. And offer a product that can be a good choice for consumers who seek a measured and responsible tool for managing their cash flow."
Allegations in the complaint include claims the payday lenders violated state code.
Sheheen wants the court to certify a class action and he believes that could produce thousands of victims. He says his office has already received complaint calls from all over the state.
In addition to Advance America, the lawsuits also name Cash Advance Centers, Carolina Payday Loans and Check Into Cash.
