Operators of Cash Cow are faced with illegally milking clients by recharging interest that is huge on loans.
The quickly growing “payday” lending industry, which charges customers interest levels of 500 % or higher for short-term loans, faced its first major crackdown in Florida on Thursday.
Their state charged Jeffrey C. Swank, owner associated with the money Cow string, and four associates with racketeering, usury and other crimes, and seized $565,743 from corporate and individual bank records.
The Tallahassee company, that has 15 shops in North and Central Florida, is regarded as lots of check-cashing chains which have sprung up all around the state to help make one- or two-week payday advances at huge rates of interest.
The state says Cash Cow defrauded car owners who used their car titles as collateral to borrow money in addition to charging usurious rates for payday loans.
Statewide Prosecutor Melanie Ann Hines filed the costs in Leon County Circuit Court against Swank, 36; Paul J. Shovlain, 58; Christie W. Hughes, 29; Reid E. Smith III, 37; and Michelle Smith, 35. Continue reading State gets tough on payday lenders.Operators of money Cow are charged