Delgado did not comment about the lawsuit saying it would violate Caroline Tullies right to privacy. The class-action portion of the lawsuit is built around a 25 fee that Cash Cow previously charged for all loan applications.
Adding the 25 to a contract of less than 2,500 will increase the Annual Percentage Rate by at least 1 percent. It is anticipated that over 1,000 Cash Cow customers will be impacted by this lawsuit if it is successful. Any customer borrowing money or refinancing a loan within four years of the filing of the lawsuit would be included in the case. The 25 fee is labeled an application fee. However, Cash Cow only charged the fee for approved loans. Therefore, it is a cost of the loan, and falls under the Truth In Lending Act explained Nicholas Mattison, an attorney for Feferman and Plumas bank personal loans.
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