High interest loan customer Elaine Gray was elated over a judge's ruling today in Reno Justice Court.
" I feel like David against Goliath."
Gray received good news in Reno Justice Court this afternoon. The case brought against her by Geometric Services was dismissed.
Gray told us about her experience with the high interest loan company last May. She says she paid off the five hundred dollar loan with interest within a year and when she contacted the business to get more information on just how much more she owed she got no answer. She sent a final payment and a letter stating she would pay no more.
"This $500 loan has now cost me more than $3,000."
The company took her to court in January. And as part of her defense, Gray turned to Nevada statute 604A. Laws designed to protect residents against excessive high interest rates and forces businesses to make arraignments with clients who have fallen behind--all in an attempt to get customers off a debt treadmill. Still the judge ruled against Elaine
In Court today during the judgement hearing Plaintiff's attorney Philip Kreitlein wanted our cameras out of the courtroom. That motion was denied.
And then in an unusual move, Judge Jenny Hubach reversed her decision. After examining six-oh-four-A she said she believed the loan company was not in compliance of the law and threw the case out of court.
This is not uncommon in Reno Justice court. Since the passage of 604A many of these cases have been thrown out on first hearing. Justices of the Peace have ruled the high interest and pay day loan companies who have brought similar cases against clients are not in compliance with the "spirit" of the law.
This legislative session Senior Judge Fidel Salcedo testified that nearly 40% of the cases in Reno Justice Court involve high interest pay day loan companies attempting to recoup their money from clients. Salcedo says in some cases after a year of payments customes have not reduced the principle figure and in fact, that amount increased.