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Predatory Puppy Loans?
Advocates call out lenders charging 189% interest on puppy loans
Consumer advocates are calling out EasyPay Finance and Utah-based TAB Bank for their roles in predatory loans for financing puppies. These loans can carry rates up to 189%. Consumer and animal welfare advocates joined together to issue a report on the practices of EasyPay and their bank partner TAB Bank.
EasyPay offers financing for purchases at pet stores, auto mechanics, furniture stores and other retailers at rates ranging from 130% to 189% APR. In 32 states where those rates are illegal, EasyPay launders its loans through TAB Bank, headquartered in Utah, to disguise the loans as bank loans that are exempt from state rate caps. This is a practice often referred to as a “rent-a-bank” scheme. In states that allow these high rates, EasyPay extends financing directly. To see which stores offer EasyPay loans, go to https://findastore.easypayfinance.com/.
For more on “rent-a-bank” schemes, check out this story:
Consumer Groups Call for FDIC Action on Predatory Lending | by Andy Spears | Feb, 2022 | Medium
“TAB Bank is misusing its bank charter by fronting for abusive loans that bleed consumers dry,” said Nadine Chabrier, policy and litigation counsel at the Center for Responsible Lending…
