Reporting Highlights
- Wave of Lawsuits: Since introducing the Flex Loan in 2015, Tennessee-based lender Advance Financial has filed over 110,000 lawsuits against its borrowers.
- High Interest and Fees: Flex Loans offer borrowers up to $4,000 at 279.5% interest, trapping thousands of people in debt that can land them in court.
- Sidestepped Federal Regulators: Advance Financial lobbied lawmakers to create the new Flex Loan to avoid federal consumer protection regulations.
Would be very interesting to see how many of those 100k voted for the Republicans that cleared the way for this to become legal
Of course they said they’d help people.
They wouldn’t get many takers if their advertising started with “Hey fuckface! Just because you’re poor as dirt that doesn’t mean you can’t line our fucking pockets.”
These kinds of interest rates are why payday loans got the regulatory hammer to crash down and smash them to bits.
I love the uneducated.
279.5% interest… what the fuck
That’s loansharking minus the guy threatening bodily harm to get you to pay.
Why would anyone accept a loan with 280% interest?
Desperation. Stupidity. Ignorance. If people weren’t doing stupid shit with their finances, companies like this and BNPL companies wouldn’t exist. They are all feeding off of desperation.
If you borrow 4,000 to refund it at the end of the thirst month it would cost 11,160?
That is so far beyond predatory…the only reason to let this exist is to create wage slavery.
Salt in the wound: The default judgements locking in wage garnishment to pay illegal parts of the debt (on top of the immorality legal ones) because the kind of people who get these loans have many responsibilities and often can’t make an arbitrary court date, and it’s not clear to them the stakes are “show up or lose all recourse” (no appeals are possible).
helped Tennesseans not trust lenders …
