Financial Fraud

Financial Fraud

‘Godfather of Payday Lending’ Victimized Borrowers Nationwide

A 77-year-old landfill that is former and investment banker from Pennsylvania whom developed a surefire solution to make money—by illegally charging you high interest levels on loans built to people who could minimum manage them—will probably spend the remaining of their life in jail.

Charles Hallinan, dubbed by prosecutors given that “godfather of payday lending” because their strategies to circumvent state guidelines and conceal their long-running scheme paved just how for other individuals to follow along with inside the footsteps, recently received a 14-year federal jail sentence for their part in gathering billions of bucks in short-term loans with rates of interest that approached 800 %.

Prosecutors portrayed Hallinan as being a ruthless loan shark whom enriched himself by trapping their victims within an endless period of financial obligation. Their scheme ended up being easy: make little loans with fixed charges that borrowers decided to pay off quickly, typically whenever their payday that is next arrived—hence the name payday advances. a debtor might sign up for a $300 loan to pay for an urgent situation vehicle fix and accept pay it straight right back, along side a $90 charge, within fourteen days. Continuer la lecture de « Financial Fraud »