ROANOKE TIMES 

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, September 28, 1994                   TAG: 9409280051
SECTION: VIRGINIA                    PAGE: C-4   EDITION: METRO 
SOURCE: 
DATELINE: RICHMOND                                LENGTH: Short

CHECK BUSINESS TO PAY $2.5 MILLION

Attorney General James Gilmore has won a $2.5 million settlement from an Alexandria company that essentially made personal loans to customers by cashing their postdated checks.

At Cash Now in Alexandria, customers could get a ``cash advance'' by writing a check dated 14 days ahead. The company advanced 72 percent of the amount of the check, but if the customer didn't repay it in 14 days, the company would keep the full check amount.

Gilmore said the fee had the effect of a loan with a 730 percent annual interest rate.

- Associated Press 


 by CNB