Advance Financial 24/7 faces a lingering class action lawsuit accusing them of deceptive practices and violating Virginia law. Borrowers allege the company breached loan agreements by suing them in general district courts instead of pursuing arbitration, a potentially unfair and intimidating tactic. While a similar lawsuit with the Attorney General led to a settlement, the class action remains unresolved, leaving its outcome uncertain.
| Complete Date | Case | Citation | Court | Short Summary |
|---|---|---|---|---|
| 2019 | Borrower Class Action Lawsuit | Not publicly available | U.S. District Court (unspecified Virginia district) | Accuses Advance Financial of breaching loan agreements and state laws by filing lawsuits in general district courts instead of following the agreed-upon arbitration clause, depriving borrowers of a fairer, cheaper dispute resolution process. Also claims the practice aimed to pressure and coerce borrowers into debt repayment. |
| 2020 | Virginia Attorney General Settlement | Consumer Financial Protection Bureau v. Shiva Finance, LLC d/b/a Advance Financial 24/7, No. 1:20-cv-00538 (E.D. Va.) | U.S. District Court for the Eastern District of Virginia | Advance Financial settled a similar lawsuit, agreeing to cease general district court lawsuits against borrowers and pay $1.2 million in restitution, addressing concerns about arbitration clause violations and unfair pressure tactics. |
| Present | Class Action Lawsuit Ongoing | Case details unavailable | U.S. District Court (unspecified Virginia district) | The class action lawsuit remains pending, with the final outcome yet to be determined. |
Implications for Borrowers:
- Advance Financial’s settlement with the Attorney General indicates a shift away from district court lawsuits and a potential recognition of past issues.
- Borrowers who have faced lawsuits in violation of their loan agreements may have grounds to participate in the ongoing class action lawsuit.
- The lawsuit and settlement highlight the importance of understanding loan agreements and dispute resolution clauses, especially regarding arbitration options.
Disclaimer: This information is for informational purposes only and does not constitute legal advice. Please consult with a qualified attorney for specific legal questions or concerns regarding your loan agreement or potential class action participation.
