DFS’ Settlement with National Credit Adjusters, LLC
What New York Consumers Should Know
The DFS Settlement with NCA
On May 17, 2016, the New York State Department of Financial Services (DFS) reached a settlement with National Credit Adjusters, LLC (NCA) that provides substantial relief to New York consumers harmed by payday loans. DFS investigated NCA for collecting payday loan debts from New York consumers. Payday loans are illegal in New York and payday loan debts are unenforceable. Attempts to collect on payday loan debts in New York violate state and federal law.
DFS" investigation found that NCA collected payments on 4,792 payday loan debts of New York consumers. As part of its settlement with DFS, NCA has agreed to provide refunds totaling $724,577.83 to New York consumers. NCA will provide these refunds to more than 3,000 New York consumers on a rolling basis with payments being mailed on a monthly basis, beginning no later than June 15, 2016 and ending by May 15, 2017.
Who is eligible for a refund under the DFS settlement?
- All New York State consumers residing outside of New York City on whom NCA collected interest in excess of 16 percent per annum on payday loan debts between January 2007 and June 2014;
- All New York City residents on whom NCA collected interest in excess of 16 percent per annum on payday loan debts between January 2007 and June 2014 and who did not receive a refund under the December 2014 New York City Department of Consumer Affairs settlement with NCA. These consumers must request a refund by contacting either DFS or NCA. Consumers may contact DFS by calling 1-800-342-3736 or emailing [email protected].
- If you believe you are eligible for a refund, you can contact DFS by calling 1-800-342-3736 or emailing [email protected] to see if you are on the refund list and to make sure your address is up to date.
When will refunds be mailed?
- NCA will begin mailing refunds to eligible consumers by June 15, 2016 and will continue mailing refund checks on a rolling basis through May 15, 2017.
- Please note: Neither DFS nor NCA will be able to provide eligible consumers with a precise date when they should expect their refund check. NCA will be mailing all notices and refunds in envelopes stating: “IMPORTANT INFORMATION ENCLOSED BASED ON A SETTLEMENT WITH NEW YORK STATE”. Stay alert for mail from NCA.
What happens if you don’t deposit your refund check?
- New York consumers who receive a refund check pursuant to NCA’s settlement with DFS should cash or deposit the check within six (6) months of the date of the check’s issue. If a New York consumer fails to cash or deposit a refund check within six (6) months of the check’s date of issue, the consumer will no longer be able to claim a refund from NCA under this settlement and NCA may retain the unclaimed funds.
Other Settlements with NCA Involving New York Consumers
The New York City Department of Consumer Affairs (DCA) reached a settlement with NCA in December, 2014 that provided refunds and other relief to New York City residents who made payments to NCA on payday loan debts. Because the DCA settlement already provided substantial relief to consumers in New York City whom NCA collected on, DFS’s settlement focused on New York State consumers residing outside of New York City. However, if any New York City residents were collected on for payday loans by NCA between 2007 and 2014 and did not receive a refund under the DCA settlement, these consumers can receive a refund under the DFS settlement for any interest NCA collected in excess of 16 percent by contacting either DFS or NCA by May 16, 2017. Consumers may contact DFS by calling 1-800-342-3736 or by emailing [email protected].