# Predatory loans
Illinois Consumer Advocates Lament Pawn Broker Loan Rates
Legislature fails to support effort to cap loan rates that now exceed 240%. A coalition of consumer advocacy groups expressed dismay today as legislative efforts to cap pawn broker loan rates at 36% were stymied by the efforts of industry lobbyists.
Credit Acceptance Faces Lawsuit Over "Nightmare" Auto Loan Practices
Complaint alleges hidden loan costs, aggressive debt collection. The Consumer Financial Protection Bureau (CFPB) and the New York Attorney General's Office today announced the filing of a lawsuit against auto lender Credit Acceptance for the company's practices that allegedly created financial distress, car repossession, and debt collection actions for borrowers. The complaint seeks relief for impacted consumers as well as a civil money penalty to discourage Credit Acceptance from engaging in these practices in the future.
Positive News: Kind Dentist Pays off Over $3,000 in Predatory Loans for Disabled Arizona Man Proving Kindness Exists
A good Samaritan read a USA Today article about a disabled man that was unable to pay off his predatory car title loans and paid off his loans in a gesture of kindness. One disabled man was just trying to get his car fixed, not fully understanding how car title loans prey on people with astronomical interest rates. He didn’t immediately realize that once the clock started ticking, the interest compounded faster than he could pay back.
MoneyLion Sued for Charging Illegal Interest Rates
Online lender charged rates in excess of 36%, trapped consumers in memberships. The Consumer Financial Protection Bureau (CFPB) announced it is suing online lender MoneyLion for charging illegal interest rates in excess of 36% to military service members in violation of the Military Lending Act. The CFPB also alleges MoneyLion trapped customers in membership programs and refused to cancel memberships even when asked.
Report: High Interest Auto Repair Loans Harm Military Families
Consumer groups release report showing car repair loans with interest rates as high as 189%. A coalition of consumer advocacy groups released a report showing the prevalence of high-interest auto repair loans and noted the impacts often fall on members of the military and their families.
Consumer Groups Call on Auto Repair Chains to Stop Offering Predatory Financing
Loans for auto repairs carry rates as high as 189%. A coalition of consumer advocacy groups has sent letters to top auto repair chains across the nation calling on them to stop offering financing for repairs through EasyPay Finance and TAB Bank, noting the loans can carry interest rates as high as 189%.
Consumers Reach $500 Million Settlement with Tribal Lenders Charging 950% Interest
Four lenders operated by single tribe forced to cancel loans, pay fines. A class of consumers has asked a Virginia federal judge to approve a $500 million settlement with a Native American tribe (Habematolel Pomo of Upper Lake) in a lawsuit over short-term loans charging interest rates as high as 950%. The rates charged violated state rate caps in states where the consumers reside.
New Jersey Borrowers File Complaint Over 700% Interest Rate Loans
Tribal Lender Bright Lending Violates Usury Laws, Complaint Alleges. A case filed in federal court in New Jersey alleges that tribal lender Bright Lending is engaged in usury and fraud by charging up to 700% for short-term loans.