Predatory Lending Practices Target Most Vulnerable

In the state of South Carolina, many of our most vulnerable neighbors are being harmed by predatory lending practices used by payday, auto title, and high-interest consumer installment loans. These lenders send out glossy promotional fliers to people in low-income census tract neighborhoods and offer loans for back-to-school supplies, holiday gifts, and even vacations. Some installment lenders send live checks to people who have not requested a loan or filled out an application. The recipient simply endorses and deposits the live check and often unknowingly now have high-cost (triple digit interest) loan. While these easy-to-get loans may seem like a great solution for a cash shortfall, they often create a vicious cycle of highly destructive debt.

Village Engage is working with the SC Fair Lending Alliance to have legislation passed that will make predatory lending practices illegal.

Explaining the harm that the vicious cycle of high-cost debt inflicts on South Carolinians—and what we can do to confront this issue.