Allied Cash Advance Settlement Restitution: Frequently Asked Questions

1. What case relates to the settlement and restitution?  The Commonwealth filed suit against Allied Cash Advance ("Allied”) in the Richmond Circuit Court in September 2017 alleging that Allied made unlicensed consumer finance loans at 273.75% interest from September 23, 2013 through July 23, 2017 (the "Relevant Period”).  The Commonwealth and Allied resolved the suit with entry of a Consent Judgment in March 2021.  
2. What did the Commonwealth allege Allied did to violate Virginia law?  The Commonwealth alleged that Allied: (a) imposed a $100 origination fee on its loans after it provided the loan funds in violation of the requirement that open-end credit plan lenders provide a minimum 25-day grace period before imposing finance charges; and (b) engaged in a pattern of "quasi-payday lending” by encouraging and permitting borrowers to enter into new contracts each month, essentially rolling over the same loan for months and sometimes years on end.
3. How many loans did Allied make during the Relevant Period?   Allied made 127,237 loans to 32,552 consumers during the Relevant Period.
4. Which consumers are eligible for restitution?  The Commonwealth is providing restitution to consumers who were most affected by Allied's wrongful conduct.  This includes those who paid off their loans during the grace period and paid the $100 origination fee, and those who were subject to the quasi-payday lending conduct and paid off numerous accounts during the grace period.  The restitution plan will provide money to 12,304 consumers, which includes 37% of the consumers who received loans during the Relevant Period. 
5. How much restitution will eligible consumers receive?  Consumers who paid off one account during the grace period will receive $20.  Consumers who paid off two accounts will receive $25.   All other consumers will receive $9.45 for each account that they paid off during the grace period.   For example, a consumer who paid off 3 accounts during the grace period will receive $28.35 and a consumer who paid off 52 accounts will receive $491.40. 
6. Did the settlement include additional consumer relief?  Yes.  Under the settlement, Allied ultimately agreed to stop collecting on any open-end credit plan account that was opened during the Relevant Period.   The total value of the debt forbearance provided on these accounts exceeds $21.7 million.    
7. Who is handling distribution of the settlement restitution checks?   The Commonwealth hired Continental DataLogix LLC ("CDLX”) as its settlement administrator in this matter.   CDLX is based out of Pennsylvania.  For this reason, the settlement restitution checks and letters will be mailed from Pennsylvania.
8. What should consumers do if they believe they are eligible for restitution from Allied but do not receive a restitution check and letter in the mail?   CDLX is making efforts to locate more current addresses for consumers who may have moved since dealing with Allied.  Any consumer who believes he or she is eligible for restitution, but who does not receive a check in a timely manner, may contact CDLX at the following toll-free number to inquire about his or her eligibility and to provide a current address: (833) 531-8941.   
9. How long do consumers who receive restitution checks have to cash or deposit their checks?   Consumers who receive restitution checks have 90 days after the date of issuance to cash or deposit their checks.   The checks expire after 90 days. 
10. What will happen if eligible consumers cannot be located or do not receive or cash their checks in a timely manner?   Ultimately, amounts due eligible consumers who do not receive or who do not cash or deposit their checks in a timely manner will be turned over to the Virginia Department of the Treasury, Unclaimed Property Division, through which the affected consumers can obtain the funds due them.