The customer Federation of America has granted a report that is new the prevalence of payday loan providers having borrowers arrested. Here’s more from a news launch:

Today the buyer Federation of America circulated a brand new study appearing that some payday, car name, and similar high-cost loan providers regularly get warrants to arrest their customers.

The analysis is dependent on a data that is unique collected with exclusive display scraping pc software that harvested home elevators every small-claims court hearing planned within the state of Utah for just one year. The analysis examined 21,653 small-claims court hearings related to 17,008 cases that are active. The research also incorporates more descriptive findings drawn from a statistically significant, representative test of 377 small-claims instances.

“This research supplies a unpleasant instance of the ‘debt-to-jail pipeline,’” said Christopher Peterson, Director of Financial Services of CFA. “Some payday loan providers are utilizing the criminal justice system to gather triple digit rates of interest from insolvent customers.”

Key findings consist of:

High-cost lenders dominated small-claims court dockets, accounting for over 68 per cent of all of the small-claims court hearings. In Utah, the court that is small-claims has developed in to a publicly subsidized commercial collection agency system for high-cost loan providers that produce unaffordable loans to susceptible customers.

High-cost loan providers had been the essential aggressive plaintiffs in small-claims courts suing over small amounts and litigating over longer durations than many other plaintiffs. Read more