Hallinan Payday Loan – Potential Class Action

Hallinan Payday Loan – Potential Class Action

Chimicles & Tikellis is investigating a potential class action lawsuit on behalf of consumers in certain states who entered into “payday” loans with one of entities listed below, and were charged excessive interest or fees. A payday loan is typically extended for a short period of time (i.e., until the next payday) at a relatively high interest rate. Many states have passed laws to protect consumers against unfair lending practices associated with these loans by limiting the amount of interest that can be charged by lenders.

On April 7, 2016, the United States Department of Justice issued a criminal indictment against Charles M. Hallinan and his attorney Wheeler K. Neff alleging criminal misconduct in the payday loan industry. Specifically, the indictment alleges that between 1997 and 2013, Mr. Hallinan engaged in a scheme to shield his payday entities from the state law restrictions on these loans. This was allegedly done by founding and partnering with federally insured banks and Indian Tribes that were exempt from these state law restrictions. These practices were reportedly referred to in the industry as “rent-a-bank” and “rent-a-tribe.”

The Justice Department’s indictment alleges that the defendants violated criminal provisions of the federal Racketeer Influenced and Corrupt Organizations (RICO) Act. C&T is investigating whether consumers may be entitled to compensation under civil provisions in RICO, and/or under other federal or state laws.

If you had a payday loan with any of the Hallinan Payday Loan Companies listed below between 1997 and 2013 and were charged an excessive interest rate, please contact the attorneys below. C&T performs its work on a contingency basis, and there is no fee to you unless we recover money on your behalf.

Hallinan Payday Loan Companies

  •  TC Services Corp., d/b/a “Telecash” and “Tele-Ca$h” and formerly known as “Tele-Ca$h” and “RAC” (“TC Services”);
  • CRA Services, d/b/a “Cashnet” (“CRA Services”);
  • Main Street Services Corp. d/b/a “Easy Cash” (“Main Street”);
  • Tahoe Financial Advisors, d/b/a “Axcess Cash” (“Tahoe”);
  • National Money Service, Inc., a/k/a “NMS, Inc.,” which did business under multiple trade names (“NMS”);
  • First East, Inc., d/b/a “Xtra Cash,” d/b/a “Fast Funding First East,” d/b/a “Payday Loan Direct” (“First East”);
  • Cheyenne Servicing Corp. (“Cheyenne”);
  • CR Services Corp. (“CR Services”);
  • Apex 1 Processing, Inc., d/b/a “Paycheck Today,” “Cash Advance Network, Inc.,” and “Instant Cash USA” (“Apex 1 Processing”);
  • Cash Advance Network, Inc. (“CANI”), which was both an independent entity and a trade name for Apex 1 Processing;
  • Instant Cash, USA (“ICU”), which was both an independent entity and a trade name for Main Street and Apex 1 Processing;
  • Fifth Avenue Financial, Inc., d/b/a “My Next Paycheck” (“Fifth Avenue”);
  • Palmetto Financial, Inc., d/b/a “My Payday Advance” (“Palmetto”);
  • Sabal Financial, Inc., d/b/a “Your Fast Payday” (“Sabal”);
  • Tribal Lending Enterprises, Division A (“TLE-A”);
  • Micro Loan Management, Division A (“MLM-A”);
  • Sequoia Tribal Enterprises (“STE”); and
  • Sequoia Tribal Management Services (“STMS”).

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Attorneys for this case:

Robert J. Kriner, Jr
Benjamin F. Johns