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Judge halts Va. auto loan company's W.Va. business

Thursday - 7/12/2012, 1:15pm  ET

CHARLESTON, W.Va. - A judge has temporarily blocked a Virginia auto loan company from collecting payments from West Virginia consumers.

A temporary injunction issued by Jefferson County Circuit Court Judge David H. Sanders also bars Fast Auto Loans Inc. from seizing any vehicles used to secure loans.

Fast Auto Loans also is blocked from making any new loans to West Virginians.

Sanders' order came last week in a lawsuit filed by the West Virginia Attorney General's Office against the company and its parent, Community Loans of America Inc. A hearing is set for Aug. 24.

The lawsuit alleges that the companies engaged in telephone harassment, disclosure of debts to employers and other illegal debt collection practices.

A call Thursday to Community Loans of America's legal department for comment wasn't immediately returned.

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