Member-only story
Predatory Auto Repair Loans Target Military Families
Consumer groups report on 189% loans from EasyPay Finance
A coalition of consumer advocacy groups released a report showing the prevalence of high-interest auto repair loans and noted the impacts often fall on members of the military and their families.
EasyPay Finance, which charges up to 189% APR, is popping up as a financing option at furniture stores, auto repair shops, pet stores and other retail outlets everywhere — including at shops near military bases where the loans are more likely to affect servicemembers. For example, EasyPay Finance is available at numerous auto repair locations and furniture stores that offer EasyPay loans near a military base.
In a statement, members of the coalition — which includes Consumer Federation of America, National Consumer Law Center, Center for Responsible Lending, and Americans for Financial Reform — pointed out the negative impact these loans have on military families.
“The Department of Defense studied high-interest loans like those issued by EasyPay Finance and TAB Bank and concluded they harmed troops and their families — and undermined military readiness,” said Nadine Chabrier, senior policy counsel at the Center for Responsible Lending. “TAB Bank and retailers, such as Meineke, should stop…
