Virginia sues Jupiter Funding Group, accused of illegal loans

POSTED: 11:13 PM Jul 19 2013   UPDATED: 12:50 PM Jul 19 2013

Virginia Attorney General Ken Cuccinelli is suing an internet payday lender, accusing it of making illegal loans.

The AG's office filed a lawsuit against Jupiter Funding Group, alleging it offered payday loans without a valid state license from state regulators. Without a license, lenders can charge no more than 12 percent in annual interest on a loan.

The attorney general's office says that according to the company's terms and conditions, its interest rates on payday loans ranged anywhere from 438 percent to 1,369 percent annually.

The lawsuit is to force Jupiter Funding to comply with state law, reimburse certain interest paid and pay civil penalties.