вЂGodfather of Payday LendingвЂ™ Victimized Borrowers Nationwide
A 77-year-old previous landfill owner and investment banker from Pennsylvania whom created a surefire method to make moneyвЂ”by illegally charging you high interest levels on loans designed to those that could minimum manage themвЂ”will probably spend the rest of their life in jail.
Charles Hallinan, dubbed by prosecutors whilst the вЂњgodfather of payday lendingвЂќ because his techniques to circumvent state regulations and conceal their long-running scheme paved just how for other people to follow along with in their footsteps, recently received a 14-year prison that is federal for their part in gathering vast sums of dollars in short-term loans with rates of interest that approached 800 percent.
Prosecutors portrayed Hallinan as being a loan that is ruthless whom enriched himself by trapping their victims in a endless period of financial obligation. Their scheme ended up being easy: make little loans with fixed costs that borrowers decided to pay off quickly, typically whenever their payday that is next arrivedвЂ”hence the name pay day loans.