Attorney General Bob McDonnell has filed suit against the Chesapeake company, Financing Alternatives, Inc. The company was the focus of a Virginian Pilot story back in March in which consumers complained that they paid for items such as computers and TVs but never received them.
Like other predatory lenders, FAI preyed on borrowers with poor credit. They set up automatic deductions from the client’s checking accounts and pocketed the cash, without sending the products. The company also has a no refunds policy, so that even when clients try to cancel the transaction, they have lost all of the money they have already paid.
According to the suit, the AG is seeking customer refunds and a $3,500 per violation civil penalty, in addition to attorney’s costs and fees.
VIVIAN J. PAIGE | All Politics is Local 