Borrower Files Class Action Countersuit Against Lender
Posted: Tuesday, August 5th, 2008 at 3:21 pm
A man who borrowed five hundred dollars from a lender, and then found that it had ballooned to over two and a half thousand dollars due to late payment fees, interest, and charges, has filed a class action countersuit against the lender after the lender tried to sue him for failing to repay the loan.
George Bozis took the loan from Lucky Cash 4 U, a local money lender, at the end of last year when his financial situation left him struggling to buy petrol, food, and other essential living items. He was sued by the lender after the loan balance soared to $2600, which he was unable to repay.
Bozis has now turned the tables by filing a class action countersuit, which accuses the lender of predatory lending practices that result in borrowers becoming trapped in a web of debt. The lawsuit was filed this week in Las Vegas Justice Court.
The complaint stated: “The sophisticated and premeditated business plan of Lucky Cash is to entrap borrowers into payments of unenforceable and unconscionable fees.” It goes on to state that the high fees charged by such lenders “put the borrowers on a debt treadmill from which it is extraordinarily difficult to escape.”
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