If you took out an online installment loan from Check 'n Go, you may be entitled to a refund.
The company has agreed to pay restitution to California customers who were charged more interest than the legal limit.
According to records obtained before and during the course of litigation, Check 'n Go made online installment loans to California consumers with interest rates as high as 400 percent.
However, the company has acknowledged no wrongdoing in agreeing to settle the case.
"Taking out a payday loan when it might seem like a good idea could be one of the worst decisions you can ever make financially," said Katy Hudson, Consumer Credit Counseling.
Payday loans are supposed to be used to get you to your next payday. But, since 2007, Check 'n Go has been under fire, involved in a civil lawsuit.
"By going through an out-of-state bank, it was our attention that Check 'n Go was attempting to skirt California law and these loans went through an out-of-state bank where they charged upwards of 400 percent interest," said Kevin Easton, San Francisco city attorney's office.
The city attorney's office in San Francisco sued the company, saying Check 'n Go went against California law, charging people more than 36 percent interest when they took out a four-month installment loan online.
Last year, the suit was settled out of court.
Check 'n Go agreed to pay $4.3 million in refunds to California consumers possibly affected.
"They could very well be receiving anywhere from $20 to $4,600 in reimbursements," said Easton.
A part of the settlement includes a 90-day refund program which started in December and ends March 28th.
"Check "n Go had to send notice who they think might be eligible for the claim, but the problem is, these loans took place in 2008 so many of those claimants may have moved," added Easton.
"People who take out payday loans tend to be struggling financially anyway. They don't keep good financial records so a lot of people may not even know that they're eligible for this or have the records showing they're eligible for this," said Hudson who adds, it's better to avoid payday loans.
"If you're using a payday loan or considering using one, there's a sign that there are other financial problems going on and you really want to take a step back and examine what's going on in your life," she said.
If you took out a four-month installment loan with Check 'n Go between 2006 and 2008, call 1-855-581-2350.
