EasyPay Kicked Out of Colorado

Short-term lender offered loans for car repairs, pet purchases

Photo by Jon Cellier on Unsplash

EasyPay Finance, a payday predator that offers short-term loans for car repairs and pet purchases, is no longer allowed to lend in Colorado as a result of a settlement with the state’s Attorney General.

The Attorney General investigated the company based on allegations that it was using a partnership with TAB Bank to circumvent the state’s interest rate cap of 36% on loans.

Here’s how the AG’s office described their findings:

An investigation by the Consumer Credit Enforcement Unit of the Consumer Protection Division in the Colorado Department of Law found that EasyPay charged interest ranging from 29% to 199% on small-dollar loans ranging from $350 to near $5,000. The investigation found that 78% of its loans were at rates over 100% and over one-third were over 168% APR. Of the consumers who did not qualify for an interest rebate promotion through 2019, 36% of the loans defaulted.’

In addition to ceasing operation in Colorado, EasyPay will pay $275,000 to consumers harmed by its predatory practices.

Here’s how one consumer advocate describes EasyPay as it relates to the company’s car repair lending operation:

“A car repair can be a…