Payday lender forced to pay $158,000 in refunds, restitution

A pay day lender with an office in Colorado Springs was ordered to refund $33,000 in finance charges and pay $125,000 in restitution and will not be allowed to reapply for a Colorado license for five years, Colorado Attorney General John Suthers’ office announced Monday.

An investigation found that Payday Everyday, which operated at 1383 N Academy Blvd. inColorado Springs, failed to offer extended repayment plans to consumers, didn’t get updated loan applications and income verification from customers and didn’t refund finance charges after loans were refinanced, Attorney General’s office spokesman Mike Saccone said.

The $125,000 will go to pay restitution to about 1,675 customers who took out 10 or more pay day loans between Jan. 1, 2009 and June 30, 2010, Saccone said. Checks will be mailed to affected customers by the end of the month. Another $33,000 in finance charges made after Payday Everyday’s license expired July 20, 2010, has already been refunded, he said.