Judge Dismisses Competition Law Claims In Case Alleging Payday Lending Scheme

SAN FRANCISCO - Consumers claiming that businesses used banking information obtained from payday loan applications to create unauthorized checks to pay for coupon services must amend their California unfair competition law (UCL) claims to allege where the conduct occurred, a federal judge held March 22. The consumers cannot, however, seek restitution from the banks on which the funds were drawn, the judge said (Amber Kristi Marsh and Stacie Evans, et al. v. Zaazoom Solutions LLC, et al., No. 11-5226, N.D. Calif.; 2012 U.S. Dist. LEXIS 37758).

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