Thu. Nov 13th, 2025

Operators of Cash Cow are faced with illegally milking customers by asking interest that is huge on loans.

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Operators of Cash Cow are faced with illegally milking customers by asking interest that is huge on loans.

The rapidly growing “payday” lending industry, which charges customers interest levels of 500 % or maybe more for short-term loans, faced its very first major crackdown in Florida on Thursday.

Their state charged Jeffrey C. Swank, owner for the money Cow string, and four associates with racketeering, usury and other crimes, and seized $565,743 from business and individual bank reports.

The Tallahassee company, which includes 15 shops in North and Central Florida, is regarded as lots of check-cashing chains which have sprung up all around the state which will make one- or two-week pay day loans at huge rates of interest.

Along with recharging usurious prices for pay day loans, hawaii says Cash Cow defrauded vehicle owners whom utilized their vehicle games as security to borrow funds.

Statewide Prosecutor Melanie Ann Hines filed the costs in Leon County Circuit Court against Swank, 36; Paul J. Shovlain, 58; Christie W. Hughes, 29; Reid E. Smith III, 37; and Michelle Smith, 35. Swank, whom faces 145 costs, ended up being scheduled at the Leon County Jail and released. Others are required become arrested within the next couple of days.

The costs will be the results of a joint research by the Florida Department of Banking and Finance together with Florida Highway Patrol.

Customer groups are critical of this banking division for allowing the expansion of payday financing at evidently rates that are illegal. State legislation limits the attention customer boat loan companies may charge to 30 % in addition to interest automobile name loan providers may charge to 265 per cent. Check-cashing organizations are allowed to charge a $5 cost plus ten percent associated with the face level of a check. The payday loan providers say they truly are simply cashing postdated checks for those who don’t possess funds inside their reports.

Money Cow’s business works such as this: a person writes a look for $122 and it is provided $100 money and a voucher for a price reduction on vehicle title loan. If clients cannot spend the $100 right right back, every a couple of weeks they spend another $22 rollover charge and get another voucher. Money Cow calls the deal a purchase of discounts.

It click site really is evidently a thriving company. Client Wilton Booth stated he paid rollover charges about 40 times. Their state’s affidavits reveal this one shop in Tallahassee accumulated $130,521 over 3 months summer that is last. By analyzing bank records from a few shops over various durations, their state identified $565,743 as “proceeds from illegal task,” then seized that quantity from business and private bank reports.

Money Cow continues to be running a business, but stopped utilising the vouchers in November, stated Dino Kitchens, Swank’s attorney.

“We categorically deny any wrongdoing,” Kitchens stated. “that is really a matter that is administrative it is simply unfortunate that individuals you will need to make unlawful things away from administrative things.”

Their state’s affidavit additionally claims that forgery had been typical practice at money Cow workplaces. Workers stated that Swank yet others forged clients’ names on vehicle games as well as on the power-of-attorney papers they utilized to repossess and offer automobiles. Hughes and Smith are notaries; they truly are accused of falsely documents that are notarizing.

Client Theresa Lieber stated she borrowed $700 from money Cow on a name loan and reimbursed almost $3,000, but her vehicle had been repossessed anyhow.

Wanda Matheney, whom borrowed $1,600, stated she had been told she would need to pay $3,500 to possess her 1989 Pontiac Trans Am came back. And Yolonda Harris stated she borrowed $500 and paid a lot more than $100 a thirty days for just two years before having her 1987 pontiac repossessed.

Most of the motor vehicle name loans had been made through a mechanic shop, low-cost Automotive, whenever clients could not manage to manage to get thier vehicles fixed.

The Department of Banking and Finance even offers filed an administrative issue against the bucks Cow shops, Swank, Shovlain, EZ Cash Inc., Title Loan Inc., Charter Investments Inc. along with other affiliates. The division is asking for a crisis cease-and-desist purchase to stop the financing methods.

Money Cow does not have any shops into the Tampa Bay area. Nearly all are into the Tallahassee area therefore the Panhandle. The organization even offers shops in Ocala and Holly Hill.