Predatory payday lending conglomerate’s chicanery stops at the CFPB

The seasons may change, but the grift stays the same for predatory payday lending.

Whether it’s that small-time payday loan outfit in the asphalt strip mall down the street or an international holdings conglomerate, the business model remains the same: dupe the financially-underserved into debt traps and then wrangle customers into refinancing multiple times, costing them thousands.

And true to their name, the Consumer Financial Protection Bureau (CFPB) is now holding one such conglomerate accountable.

In late August, the CFPB sued high-cost installment lender Heights Finance Holding Company, previously known as Southern Management Corporation and its subsidiaries (known conjointly as Southern) for the illegal practice of loan-churning that has harvested hundreds of millions in predatory loan costs and fees.


continue reading »