By Matt Bush
A lawsuit involving the District and a Virginia car title lender over loans to D.C. residents the city said violated its laws, has been settled.
The city says Fast Auto Loans will refund all interest paid by more than 100 D.C. borrowers and give back repossessed cars. The company charged annual interest rates of 300 percent, while 24 percent is the maximum allowed under D.C. law.
With auto title loans, borrowers put their vehicles up as collateral, handing over the title and a copy of their keys. Most of the loans by Fast Auto Loans to D.C. residents were made at the company's Alexandria and Manassas offices. Similar settlements were reached with CashPoint and Loan Max last year.