State Accuses Paycheck Lender of Collection Abuses

Seattle, WA – Authorities are seeking to revoke licenses from one of the state’s largest payday lenders and permanently bar its executives from the check-cashing and small-loan business.

The state Department of Financial Institutions has accused Pacific Financial Holdings, which does business as Fast Cash Loans and Loan Ex, of abusive debt collection practices, overcharging on fees, lying about loan percentage rates and failing to keep accurate records with financial regulators.

The Federal Way-based company is cooperating with the state’s investigation and will move quickly to correct any mistakes, said the company’s Seattle attorney, Jon Zulauf.

Fast Cash branches remain open.

Complaints against Fast Cash had been building up in the past three years, said Chuck Cross, director of DFI’s consumer division.

State investigators interviewed more than 50 consumers, Cross said. Thirty-two said Fast Cash collectors represented themselves as fraud investigators and threatened the consumers with criminal prosecution for felony check fraud. Such representation is illegal.

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