World Finance shops (thatвЂ™s just just what the signs outside say) offer just exactly what customer advocates call вЂsmall-dollar, high-costвЂ™ installment loans, repaid in fixed monthly payments, to credit-challenged consumers who donвЂ™t have lots of other available choices for borrowing cash.
The company profits heftily by providing loans that are loaded with interest, fees, and credit insurance, often near the maximum allowed by state law; from renewing those loans multiple times, adding on more interest, fees, and insurance premiums; and from aggressive collection practices to get their money as Marketplace and ProPublica have found in an investigation.
In yesterdayвЂ™s installment that is first of series вЂњBeyond Payday Loans,вЂќ 31-year-old Katrina Sutton informed her tale.
She took down a $207 installment loan from a World Finance shop inside her Atlanta suburb of McDonough, Ga. to correct the brake system on her behalf 1997 Crown Victoria. She was working part-time at Walmart at that time, but her hours got cut and she had trouble having to pay, therefore World renewed her loan, supplying her with a tiny payout вЂ” $44 вЂ” of major sheвЂ™d already paid down.Continue reading