469% Interest is a Bit Steep, Class Says

     CHICAGO (CN) – CMK Investments preys on borrowers by demanding as much as 469 percent on payday loans, a class action claims in Cook County Court.

     Named plaintiff Dameca Block says she borrowed $700 from CMK in March, at 469 percent interest. She says her payment schedule called for 26 interest-only biweekly payments starting at $71.96, immediately jumping to $125.92, with a final balloon payment of $825.92.
     Block says CMK violated the Pay Day Loan Reform Act, which limits interest rates, refinancing, and rollovers, and also violated the Illinois Wage Assignment Act.
     She estimates that more than 50 other people were similarly defrauded. She is represented by Daniel A. Edelman.

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