W.Va. consumers to get payday-loan refunds

CHARLESTON, W.Va.

Companies offering illegal Internet payday loans through at least five websites will refund more than $305,000 under a settlement the West Virginia attorney general's office.

Attorney General Darrell McGraw announced the deal with FFD Companies on Wednesday. FFD will also stop marketing, making or collecting on payday loans in West Virginia.

The settlement benefits 576 people.

McGraw calls the high-interest payday loans treacherous traps that can lead to financial ruin.

McGraw sued FFD in November. The settlement covers FFD subsidiary corporations in Delaware, Georgia, New Mexico, Nevada, Texas, and Utah.

Since 2005, McGraw has sued 10 Internet payday lenders and collection agencies, resulting in $2.4 million in refunds and canceled debts.