Refinancing payday loans - Rock

After Googling “fast money,” she ruled out the top three names that popped up because she knew from talking to the people who she served at her church’s feeding ministry that she didn’t want a payday or car title loan.,Instead she signed up for a $2,350 personal loan from a company called NetCredit.,Williamson is among the tens of thousands of Virginians who have found themselves unexpectedly spending thousands to pay off high-interest short-term loans from companies that have found a way around the state’s consumer protection laws.,A review of thousands of such loans — detailed in court records and data obtained from the state attorney general through Freedom of Information Act requests — shows they are aimed at people who have few financial options, most of whom struggle to keep up with their payments.,Those payments, in turn, make for some of the most profitable lines of business in finance. And keeping Virginia open to high interest rate lending is a multi-million-dollar source of campaign funding — well over $5.7 million since payday loans were allowed into the state in 2002.,“This is not about your ability to pay, it is all about the ability to collect. That’s why it is not making loans … it’s loan sharking,” said Jay Speer, executive director of the Virginia Poverty Law Center.,The thing about high-interest rates loans is that they seem so easy.,And it said the interest rate on her loan was 149.48 percent.It’s not the highest rate ever seen by the team of lawyers Attorney General Mark Herring has assigned to crack down on predatory loans — not even the highest they’ve seen from NetCredit.,A lawsuit filed by Herring’s office this summer in Fairfax charges that NetCredit lent between $1,000 and $10,000 to at least 47,000 Virginians, at rates as high as 155 percent. Herring is alleging the high rates on NetCredit loans violate Virginia law. NetCredit says its loans are governed by Utah law, which does not cap interest rates.,NetCredit’s parent company, Enova International, which also operates CashNet, collected $843 million on its various loans and credit lines — or 120 percent of what it lent, according to its financial filings with the U.S.cash cow payday loans
Securities and Exchange commission.,She borrowed from another firm to do that, but kept struggling to pay bills.

So five months later, she borrowed another $7,500 from NetCredit. But after making 19 payments, totaling about half the sum she borrowed, she missed a payment. NetCredit demanded immediate payment of the balance of the loan plus past due interest, a sum it said totaled $9,262 — making Parks’ effective annual interest rate 72 percent.,NetCredit’s affiliate, CashNet, charged Patricia Arnold, a disabled veteran from Lynchburg, a 299 percent interest rate on a $600 loan, her lawsuit said.

She paid more than $2,000 for the loan over the next two years — but the company said she still owed $894.,Last year, the attorney general’s Predatory Lending Unit won a $15.3 million settlement from online lender CashCall, accused of making illegal online loans with interest rates of up to 230 percent to thousands of Virginians.,The unit has tracked details on more than 17,000 such loans, according to records the attorney general’s office provided in response to a Freedom of Information Act request.,CashCall makes a higher return the shorter the loan term, with 74 borrowers paying more than $2,000 apiece to borrow $500 for a year. Those one-year loans — which included a $350 origination fee — netted the company a profit of 81 percent overall.,CashCall made 42 percent on two-year loans. And those with 47-month terms earned the firm a comparatively modest 14.5 percent return, but they were its biggest business thanks to the dollar amounts involved.,Several Virginians had to pay nearly $15,000 each to satisfy $2,525 loans with 47-month terms.,CashCall earned those healthy returns even though a third or more of those who took out one- or two-year loans didn’t pay them back in full.,Virginia banks make about 5 percent on their loans, according to the latest state average report from the Federal Financial Institutions Examination Council.,It can be particularly difficult for borrowers to pay off debt with one type of loan — an “open end” credit line.,When she goes out at dawn every Saturday, to distribute food to homeless people at a parking lot near her home, she’s started asking if they’d had experience with high-interest loans.,“I hear a lot about payday loans, about taking out a loan to try to get by and getting in over your head, and losing everything,” she said. “It’s borrowing from Peter to pay Paul.”

payday loans dallas