Archive for the ‘Loan Payday Loan’ Category

That Pay Day Loan Might Get You Arrested

Posted by: funnytodd   
November 29th,

The customer Federation of America has granted a report that is new the prevalence of payday loan providers having borrowers arrested. Here’s more from a pr launch:

Today the customer Federation of America circulated a study that is new that some payday, car name, and similar high-cost loan providers regularly get warrants to arrest their clients.

The research is dependent on a unique data set collected with unique display screen scraping pc pc pc software that harvested home elevators every small-claims court hearing planned within the state of Utah for just one 12 months. The analysis examined 21,653 small-claims court hearings connected with 17,008 cases that are active. The analysis also incorporates more in depth findings drawn from a statistically significant, representative test of 377 small-claims situations.

“This research provides a unpleasant illustration of a ‘debt-to-jail pipeline,’” said Christopher Peterson, Director of Financial Services of CFA. “Some payday lenders are utilizing the unlawful justice system to get triple digit rates of interest from insolvent customers.”

Key findings consist of:

High-cost lenders dominated small-claims court dockets, accounting for over 68 percent of most small-claims court hearings. In Utah, the small-claims court system has evolved into a publicly subsidized business collection agencies system for high-cost loan providers which make unaffordable loans to susceptible consumers. Read the rest of this entry »