THE STATE FINANCIAL Institutions Division has fined Reno payday lender Leads Global, Inc. a record-setting $50,000 for unlicensed lending activity and multiple other violations of Nevada law. The state has further ordered the company to pay $1,054 in compensatory damages to complainant Stacie Banks, a Michigan resident.

The Financial Institutions Division licenses and regulates check cashing, short-term loan, and title loan services, as well as deferred deposit services, commonly referred to a "payday" loan services.

Based on evidence from Banks, the division issued a cease and desist order and a notice of fine and hearing in March to Leads Global, a Nevada corporation, d.b.a. Cash Today, Cash Today Commercial, Cash Today Factoring, Global Cash Advances, Global Advances, Global Financial Services International Limited, Corporate Office Services. Company representatives failed to appear for the hearing on April 27.

According to Banks' documentation and testimony, in August 2006 she contacted Leads Global, Inc. via the Internet to secure a $200 loan. She was never informed of the specific terms of the loan, such as the Annual Percentage Rate or APR, a violation of state lending law. She was also subjected to weekly deductions of various "junk fees" from her bank account, though no deductions were taken toward her principal. Banks was ultimately required to pay Leads a total sum of $857 for a $200 loan and had to endure a pattern of harassment from Leads representatives at her home and place of employment in order to permanently conclude her dealings with the company.

The division's order also includes provisions for interest accrual on the $50,000 until the fine is paid in full and for Banks to pursue other remedies through civil action.

"We will continue to aggressively pursue unlicensed activity in our state and will seek the maximum penalties to send a message to unscrupulous operators that they had better do business elsewhere," said Acting Financial Institutions Commissioner Steve Kondrup.

Kondrup advises consumers to verify the licensing status of lenders prior to doing business in the state or over the Internet by logging on to the division's Web site at www.fid.state.nv.us.