Their state is using aim at an organization which was pressed out of this cash advance company in Pennsylvania but has came back with an equivalent short-term, high-cost product.
Advance America, the country’s payday lender that is largest, delivers a “Selection personal credit line” product which allows clients searching for fast cash borrow as much as $500.
Their state Department of Banking filed suit against the company, saying it provides lines of credit to borrowers without a license and with interest and fees that exceed what state law allows wednesday. Based on the state, the line’s yearly interest of 5.98 % and month-to-month cost of $149.95 can change a $500 initial loan into a bill in excess of $4,300.
Advance America of Spartanburg, S.C., It introduced the personal line of credit in June, around three months after it stopped providing its better-known loans that are payday Pennsylvania. Read more “State sues lender for “illegal’ credit line Advance America has 6 loan facilities in Valley.”