Instructor: $200 pay day loan pushed us to brink of bankruptcy

Instructor: $200 pay day loan pushed us to brink of bankruptcy

With bills turning up, her credit shot, and an option looming every day of whether or not to invest her final bucks on meals or on gasoline to make the journey to work, senior high school science teacher Dawn Schmitt went online looking for financial hope.

The search engines led her towards the web site of the business called MyNextPaycheck. And within seconds, $200 ended up being deposited into her banking account – a loan that is short-term cushion her until her next payday.

  • At federal test, prosecutors utilize Main Line payday loan provider’s words against him
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It seemed too good to be true, she told a federal jury month that is last.

It had been. Within months, she had been bankrupt.

Schmitt’s battle to spend right right back that initial $200 loan, by having an interest that is annual of greater than 350 %, is among the witness accounts federal prosecutors in Philadelphia have presented within their racketeering conspiracy instance against Main Line business owner Charles Hallinan, a payday lending pioneer whom counted MyNextPaycheck as you in excess of 25 loan providers he owned. Continue reading