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‘Godfather of Payday Lending’ Victimized Borrowers Nationwide

‘Godfather of Payday Lending’ Victimized Borrowers Nationwide

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

Charles Hallinan, dubbed by prosecutors while the “godfather of payday lending” because their strategies to circumvent state rules and hide his long-running scheme paved the way in which for other individuals to check out in their footsteps, recently received a 14-year federal jail phrase for his role in gathering vast sums of bucks in short-term loans with rates of interest that approached 800 %.

Prosecutors portrayed Hallinan being a loan that is ruthless whom enriched himself by trapping their victims within an endless cycle of financial obligation.

Their scheme ended up being easy: make little loans with fixed charges that borrowers consented to repay quickly, typically whenever their payday that is next arrived—hence the name pay day loans.