January 06, 2015
Our offices have been abuzz over the past couple of weeks about the recent Pew Charitable Trust report on online payday lending. Among the highlights: 650% APR is typical for lump sum online payday loans.
One-third of online loans are structured to renew automatically, paying only the interest without reducing the principal.
And 90% of payday loan complaints to the Better Business Bureau are against online lenders, although online loans (as opposed to storefront) account for only about one-third of the market.
The news of the Pew report came via our friends at the Virginia Poverty Law Center who will be holding their annual statewide legal aid conference in Portsmouth next week. Payday loans will be among the critical topics being discussed. Boleman Law is proud to be a long term VPLC conference sponsor.
Naturally this concerns us because we see so many casualties of payday loans in our offices every day. They have been caught in the ‘death spiral’ of overdrawn checking accounts from unauthorized bank withdrawals, credit reporting issues, intimidation and threats plus an overwhelming burden of debt that never seems to end.
If someone you know is losing their battle with overwhelming debt, please ask them to call us today. They will get a free consultation with an experienced attorney to discuss options and the best legal solutions to protect their rights.
We will help them.
G. Russell “Rusty” Boleman and his wife, Gayle founded Boleman Law Firm in 1991 with the goal of treating everyone with respect and dignity, while providing excellence in customer service and legal advice. Today, Boleman Law is the largest and most well-known consumer bankruptcy law firm in Virginia, having helped over 106,000 Virginians in the last 23 years.
Rusty’s strong commitment to legal knowledge, ethics and community service has made him one of Virginia’s preeminent lawyers.
2104 W Laburnum Ave, Suite 201
Richmond, VA 23227
Convergence Center III
272 Bendix Road, Suite 330
Virginia Beach, VA 23452