Frascella Enterprises, Inc. Litigation

In this class action lawsuit, the Plaintiffs challenged the legality of short-term loans, generally in amounts of $500 or less, made to consumers through Frascella Enterprises, Inc., a storefront payday loan servicer in Philadelphia that was doing business as "Cash Today." That company is now a debtor in bankruptcy (and, therefore, is referred to as "the Debtor"), and has ceased servicing payday loans in Pennsylvania. Because loans of this kind usually come due on the borrower's next payday, they are commonly referred to as "payday loans." The lawsuit named as Defendants not only the Debtor but, also, Larry Frascella and David Frascella, Jr., two brothers who own the Debtor and other companies. Plaintiffs alleged that the Frascella brothers, acting through their companies, violated Pennsylvania law regarding the amount of interest that can be charged on small loans. The Plaintiffs were seeking a legal determination that the loans were usurious and were also seeking an award of damages in the amount of the allegedly excess interest or charges that consumers paid.

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