Need a Car Repair Loan? Stay Away from EasyPay
Repayment is anything but easy when rates go up to 189%
A story in Repairer Driven News notes that many auto repair shops offer financing for repairs through EasyPay Finance, a fintech lender that partners with TAB Bank to offer loans with interest rates up to 189%.
The story includes notes from Consumer Federation of America and National Consumer Law Center on the scope and impact of these predatory loans:
“Auto repair shops throughout the country, including major auto repair companies, are steering struggling consumers into deceptive, high cost loans with lasting impacts, including credit report harm and debt collection harassment,” said Rachel Gittleman, financial services outreach manager at CFA.
Lauren Saunders of NCLC suggests that these shops should steer clear of partnering with any lender who charges interest rates in excess of 36%.
“Auto body shops should not partner with lenders charging more than 36% (ideally lower for larger loans) — 36% is widely viewed as the dividing line between mainstream credit and high-cost credit that is much more likely to be predatory.”
I wrote recently about TAB Bank and their propensity to present two faces to the public:
