Once limited to highly-visible signs and convenient neighborhood locations, payday loans beckoned borrowers with promises of quick cash and no credit checks. With the continued spread of Internet access, the business of payday lending has evolved and into a digital industry. Hiding behind the anonymity the Internet provides, lenders operate predatory practices that challenge enforceability.The uneducated borrower is provided with the ability to secure a much-needed loan; however, far less noticeable are the loan terms that include high-cost fees and triple-digit interest rates. Instead of a small amount owed for a couple of weeks, borrowers become trapped in thousands of dollars of debt from fees and interest that can last a year or even longer.While Payday Lenders believe their operations to be protected by the anonymity of the Internet, there are specific actions consumer advocate attorneys can take to prevent these operations from preying on the unsuspecting consumer.
What You Will Learn
- The foundation of knowledge you will need for successfully combating Internet payday lending.
- The common hurdles encountered when taking these cases and the tactics to overcoming them.
- Putting the foundation and tactics together: what it looks like in practice.
Jean Ann Fox is Director of Financial Services for the Consumer Federation of America, an association of about 280 pro-consumer state and national organizations that speaks on behalf of consumers. She specializes in financial services, electronic commerce, and high cost credit issues. Before going to work for CFA in 1997, Ms. Fox served as a Board member, President and Vice President of CFA.
Paul Chessin is a Senior Assistant Attorney General in the Colorado Attorney General’s Office. He joined the office in 1998. Beginning in 1999, he was the sole, and since October 2007 is the senior, litigation attorney in the Consumer Credit Unit of the Consumer Protection Section.Dale Pittman - as a Richmond area attorney, Dale Pittman represents Virginia consumers in debt collection harassment and abuse cases under the Fair Debt Collection Practices Act.