Albemarle woman sues over car loan, repo

An Albemarle County woman is suing Allied Cash Advance over reportedly poor communication that led to her car being repossessed.

Ramonda Brown is accusing the company of violating the Truth in Lending Act, improperly repossessing the vehicle under the Uniform Commercial Code and misrepresentation under the Virginia Consumer Protection Act. With the help of attorneys from the Legal Aid Justice Center, Brown filed the claim last month in Albemarle Circuit Court.

David Thomas, a defense attorney who represents Allied locally, said his policy is not to comment on pending litigation.

Brown said recently that she hadn’t had a title loan before contacting Allied. She said she went into the office, filled out paperwork and was given a check that day.

According to the lawsuit, Brown began making late payments starting in 2010 through February 2011. The complaint said Brown made the payment for the previous month when she got her check on the third day of the following month. Allied employees reportedly knew that she would make late payments and would assess a late fee.

After receiving her bill for $430.38 plus the $15 late fee, the suit said, Brown made a $445.38 payment on Jan. 3. According to the lawsuit, she then received “two confusing letters,” one of which mentioned that she hadn’t acted within a 10-day waiting period that hadn’t lapsed yet. Brown then contacted Allied, the suit said.

“Plaintiff was told that if she made her January payment as she normally did and then paid an extra hundred dollars, then her car would be taken off the repossession list,” the lawsuit said.

The complaint said Brown made that payment, but then received a letter that said she had been sent a notice of default and hadn’t acted within another 10-day period that hadn’t lapsed yet. Brown’s car was repossessed on Feb. 25.

Brown, who has since recovered her car while the court proceedings take place, said life without her car was difficult. The mother of two boys said she had to recover from major back surgery and the loss of her father in April without a vehicle.

“My sister would pick me up and take me places,” Brown said. “I would have to give her gas money.”

Brenda E. Castañeda, who is representing Brown along with Thomas D. Domonoske from Legal Aid’s Harrisonburg office, said she has represented several people against title lenders.

“With almost every set of paperwork that comes in … I can always find a violation with state or federal law,” Castañeda said.

Virginia lawmakers have modified state law several times in the last decade to prevent “predatory” lending from payday and car title lenders. As the law has been modified, lenders have come out with new types of loans that are permitted under the law. These loans come with high interest rates.

Legal Aid is hoping to tackle these issues with the Bank On Greater Charlottesville initiative, which would try to reduce the number of people who don’t have bank accounts and offer an affordable loan program as an alternative to payday or title lending. Alex R. Gulotta and others presented the idea to Charlottesville’s City Council in January.

Gulotta said that the program is still moving forward.

“There are still active steps being taken to bring Bank On to Charlottesville,” Gulotta said. “We’re hoping information will come out early this fall.”