ATLANTA - Ten elderly or disabled Fulton County residents have filed suit against a loan company they claim packaged small loans with numerous extras that drove up the cost of the loans. <br>
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The lawsuit filed Tuesday in Fulton County Superior Court said Stewart Finance Co. took loan payments out of their small Social Security checks each month for ``car club'' memberships and other ``worthless insurance products from which the defendants derive rich commissions and undisclosed kickbacks.'' <br>
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The plaintiffs include people who don't own cars but had car club membershps tacked onto the loan payments. One of them, Kellysteen Ruffin, borrowed $178 and found herself owing $500 in principal alone because of a car club membership she didn't know she had signed up for, according to the suit. <br>
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It said other debtors were charged for disability insurance on the loan, even though they were already on disability. <br>
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John Ben Stewart, owner of Stewart Finance Co., did not return calls from The Atlanta Journal-Constitution seeking comment Tuesday. His attorney, Roy Manoll, also would not comment, saying he had not yet seen the lawsuit. <br>
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Plaintiffs Elsie Williams, 68, and Arthur Favors, 65, have roadside emergency insurance that was added to loan payments being taken from their Social Security checks monthly. <br>
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In exchange for cash, both agreed to have their checks deposited in a Stewart-controlled bank account and to take what was left after Stewart's fees were paid. <br>
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They turned to Stewart repeatedly, in part to cover the cost of their inflated loan payments, the newspaper said. <br>
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A $98 loan cost Favors $210, he said. Williams' $200 loan ended up costing her $360. Both said they signed papers accepting the extra charges, but didn't know what they were agreeing to at the time. <br>
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Williams has cataracts and cannot read small print. Favors never learned to read.
