Personify also lends directly in a number of states. Updated March 28, 2023Īpplied Data Finance, doing business as Personify Financial uses First Electronic Bank , an FDIC-supervised industrial bank chartered in Utah (and owned by Fry’s Electronics), to enable installment loans of $500 to $10,000 with APRs as high as 179.99% in several states that do not allow that rate for some or all loans in that size range. Enova also offers rent-a-bank lines of credit at rates that states do not allow. Updated March 28, 2023Įnova, which operates the payday and installment lender CashNetUSA, uses the NetCredit brand through FDIC-supervised Republic Bank & Trust (Kentucky) and Transportation Alliance Bank (TAB Bank) (Utah) to make installment loans of $2,500 to $10,000 with APRs up to 99.99% in several states that do not allow those rates on some or all loans in that size range. In addition to the Rise installment loan, Elevate also offers a line of credit, Elastic, using FDIC-supervised Republic Bank & Trust (Kentucky), at an effective APR of about 100% in a number of states that do not allow that rate. Elevate was sued by the DC Attorney General for engaging in a rent-a-bank scheme and agreed to a nearly $4 million settlement and to stop usurious lending in DC. Rise also lends directly in a number of other states. 12 Payments of $514.60 each for a total of $6,175.20.Įlevate’s Rise uses FDIC-supervised FinWiseBank(Utah) and Capital Community Bank (Utah) to make installment loans of $500 to $5,000 with APRs of 99% to 149% in several states that do not allow those rates for some or all loans in that size range. Sample OppLoans/FinWise Bank loan : A $3,000 loan at 160% APR for 12 Months. OppLoans has been sued by the District of Columbia Attorney General for engaging in a rent-a-bank scheme and agreed to pay $2 million and stop evading DC’s usury laws. OppLoans also lends directly in several states. OppLoans (aka OppFi) uses FDIC-supervised FinWise Bank (Utah), Capital Community Bank (CC Bank) (Utah), and First Electronic Bank, a Utah industrial bank, to make installment loans of $500 to $4,000 at 160% APR in a number of states that do not allow that rate for some or all loans in that size range. Note: The map at the top of this page on How Many Rent-a-Bank Lenders Operate in Your State does not include states where EasyPay operates directly. EasyPay’s website states that it administers financing directly in other states, most likely under state lending or retail installment sales laws.ĮasyPay Finance has settled enforcement actions brought by Colorado and the District of Columbia for making unlawful loans, and Transportation Alliance Bank was forced by Iowa to stop facilitating EasyPay loans. EasyPay extends credit through FDIC-supervised Transportation Alliance Bank dba TAB Bank (Utah) in several states, that may not allow that rate. EasyPay’s website does not disclose its rates, but examples from consumers in some states include $1,500 loans at 188.99% APR. Watch out for These High-Cost Lenders and Their Bank Partners Updated March 28, 2023ĭuvera Billing Services dba EasyPay Finance offers high-cost credit through businesses across the country that sell auto repairs, furniture, home appliances, pets, wheels, and tires, among other items – including predatory puppy loans. See below to learn about the banks and lenders teaming up to issue triple-digit interest, debt-trap loans in states that do not allow high-cost loans - and which states they avoid.įIND YOUR STATE in this spreadsheet to see how many “rent-a-bank” lenders are attempting to avoid rate caps in your state. Lenders pick and choose where they lend, generally avoiding states that vigorously enforce their laws. Rent-a-bank schemes are of questionable legality. Several high-cost consumer lenders – American First Finance, Axcess Financial, EasyPay, Elevate, Enova, LoanMart, OppLoans, Personify Financial, and Total Loan Services (through EZ$Money Check Cashing, LoanMe, Lendly LLC, MoneyKey,, and SunUp Financial) – are laundering loans through five FDIC-supervised banks: Community Capital Bank, FinWise Bank, First Electronic Bank, and TAB Bank of Utah, and Republic Bank & Trust of Kentucky. At least 45 states and the District of Columbia (DC) cap rates on at least some installment loans.īut high-cost lenders are increasingly using rent-a-bank schemes with a small number of rogue banks, which are not subject to state interest rate limits, to evade state rate caps on installment loans and lines of credit. American votersstrongly support interest rate caps. Since the time of the American Revolution, states have limited interest rates to protect their residents. Interest rate limits are the simplest and most effective protection against predatory lending.
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