During a routine examination of the company's books, department auditors found that the company had charged loan fees in excess of those allowed under Washington law. The department notified LFG of their findings and told the company to issue refunds. During a follow-up examination, it was discovered LFG still had not made any refunds. The examination team obtained copies of the documents to successfully claim against the bond. Legend Financial Group no longer conducts business in Washington.
Checks averaging $1,560 each were sent to 109 Washington consumers this week by the Consumer Services Division of the Department of Financial Institutions. The checks are refunds of inappropriate charges and fees by Legend Financial Group (LFG) of San Diego. Consumers receiving refunds reside in King, Snohomish, Pierce, Thurston, Kitsap, Skagit, Clark, Spokane, Whatcom, and Yakima Counties.
“We are pleased to be able to return these funds to Washington consumers," said John Bley, director of the Department of Financial Institutions. "State law protects consumers from such overcharges, and the Legislature has wisely required all licensees to maintain a bond," he said. “Without the bond," he added, "it is unlikely these consumers would have received refunds.”
The Division of Consumer Services regulates consumer loan companies, conducting periodic reviews of their books and records to make sure they comply with applicable state and federal lending laws. The division also regulates mortgage brokers, escrow companies, and check cashers and sellers. If you've had a loan from Legend Financial Group in the past and think you may be due a refund, contact the Consumer Services examination team in Olympia at 360-902-8811.