Our co-counsel has sucessfully litigated cases against high interest rate small loan outfits for cheating disabled persons by putting them into small loans that they don’t need and then churning the loan so that it eats up much of the victim’s social security payments. We are looking for cases to bring against high interest rate pay day lenders and installment payment lenders who have taken advantage of mentally impaired individuals. We want to put an end to high interest rate lenders harming disabled mentally impaired individuals.
The National Consumer Law Center’s website provides great insight into the predatory practices of high interest rate pay day and installment payment lenders.
To view NCLC’s information sheet on high interest rate loans click here. NCLC’s website describes the loan churning practices of pay day and predatory small lenders as follows:
Lenders then encourage consumers to rollover or refinance one payday loan with another. The result is that the consumer pays another round of charges and fees and obtains no additional cash in return. For example, if a consumer is charged 15% on the face amount of the check of $200, the consumer receives only $170 in cash and the lender pockets a $30 fee. The APR is 458% if this loan is repaid in two weeks. If, instead, it is rolled over into a new payday loan, an additional fee of $30 is tacked on which raises the loan amount to $230. The APR jumps to 917%.� These loans are exorbitantly expensive and can drive consumers ever deeper into debt. Further, payday lenders often threaten to use the criminal system to collect these debts or routinely file criminal charges when a check is returned for insufficient funds.
These routine loan churning problems are exasperated when the predatory high interest rate lenders target mentally impaired elder or disabled individuals. This is a practice that our firm and its affliated consumer attorneys around the country have targeted as a priority practice which we want to stop by fling suit on behalf of the victims.
If you believe you know someone who has been a victim of predatory loan churing by payday lenders DiTommaso Lubin Austermuehle may be able to help rectify the problem. We or experienced co-counsel are prepared to file suit in the right case anywhere in the country. For a free consultation on your rights as an employee, contact us today.
Our consumer rights private law firm and our affliated co-counsel handle individual and class action consumer rights and predatory lending cases that government agencies and public interest law firms may decide not pursue. Class action lawsuits our law firm has been involved in or spear-headed have led to substantial awards totalling over a million dollars to organizations including the National Association of Consumer Advocates, the National Consumer Law Center, and local law school consumer programs. DiTommaso Lubin Austermuehle is proud of our achievements in assisting national and local consumer rights organizations obtain the funds needed to ensure that consumers are protected and informed of their rights. By standing up to employee and consumer fraud and rip-offs, and in the right case filing employee or consumer protection lawsuits and class-actions you too can help ensure that other emploment and consumers’ rights are protected from unscrupulous, illegal or dishonest practices.
Our Naperville, Evanston, Aurora, Waukegan, Arlington Heights, Downers Grove, Elgin, Elmhurst, Joliet, Elgin, Woodridge, Naperville, Highland Park, Northbrook, Wilmette, Wheaton, Waukegan, Oak Brook, Lombard, Hinsdale and Chicago consumer and predatory lending lawyers and attorneys provide assistance in fair debt collection, consumer fraud and consumer rights cases including in Illinois and throughout the country. You can click here to see a description of the some of the many individual and class-action consumer cases we have handled. A video of our lawsuit which helped ensure more fan friendly security at Wrigley Field can be found here. You can contact one of our Chicago area consumer rights, predatory lending or consumer protection lawyers who can assist in wage claim, lemon law, unfair debt collection, junk fax, prerecorded telephone solicitations, and other consumer fraud or consumer class action cases by filling out the contact form at the side of this blog or by clicking here.