Quik Cash Financial Services has agreed to pay up to $170,000 in restitution as part of a consent judgment reached with Arizona Attorney General Tom Horne.
Horne said Quik Cash, a payday lender, routinely filed default judgments in Pima County Court in Tucson against residents who lived elsewhere in the state and often succeeded in getting garnishment orders against them.
The state sued Quik Cash in 2009, alleging that the company's actions deprived consumers of their right to appear in court or to contest judgments and garnishments. In some cases, Quik Cash allegedly collected on debts that consumers had already paid, the state's lawsuit charged.
“Payday lending is now illegal in Arizona,” Horne said. Anyone who is aware of payday lending in the state should contact his office, he said.
