Internet lender fined, ordered out of business

Freedom Financial Group, an Internet loan company, has been fined $50,000 by the state for doing business without a state license.

State Financial Institutions Division Deputy Commissioner Steven Kondrup ordered the company, officially MW Marketing, to immediately stop making short-term loans, title loans and deferred-deposit loans. The company was also ordered to stop cashing checks for customers.

Kondrup said state examiners discovered the company was operating loan and check-cashing services through the Internet at www.EDOLLARDIRECT.com, as well as other electronic media.

He said consumers involved in check cashing or loan activities with the company can void their contracts and seek additional remedies or penalties through civil court.

"Consumers should be wary of giving their personal information to an Internet company without first verifying that the company is licensed to conduct business in Nevada," Kondrup said. "Otherwise, they could be prey to identity theft and financial risks, and the state could do little to help them."

For information, log on to www.fid.state.nv.us, or call the Nevada Financial Institutions Division at 684-1842.