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Consumer Blog

Puppy Loans are a Rip-Off

Posted by Sami Thalji | Mar 29, 2022

Are you in the market to buy a new puppy? You better be careful because there is no industry that slimy money lenders, banks, and debt collectors will not extend their tentacles to. A recent report shows Transportation Alliance Bank (TAB Bank) is helping EasyPay Finance pull off a corrupt and immoral lending scheme when it comes to buying a new puppy. Apparently, financing puppies has become a thing, just like financing everything else, but these puppy loans are unique in that it turns out that that EasyPay and TAB Bank are collecting between 130% to 188% in interest rates, which is illegal in most states. Predatory lenders like EasyPay get around state laws by laundering their loans through “legitimate” banks, which get exemptions from state usury laws. But interest rates this high are enough to make most banks blush, so EasyPay has to find a bank with absolutely no values at all. Enter the latest predatory “rent-a-bank” on the scene, TAB Bank, chartered in Utah and supervised by the FDIC. TAB Bank helps EasyPay charge up to 189% interest on various loans in various industries nationwide, including pet stores, furniture stores, and auto mechanic shops. When a state has a law against predatory lending, EasyPay turns to TAB Bank to do the dirty work. When a state has no laws protecting consumers against predatory lending then they do the dirty work themselves by cutting out the middleman. Complaints against EasyPay and TAB Bank include deceptive interest-free promotions, high interest rates charged to service men and women, debt collector harassment, refusal to cancel loans for puppies that were sick and died, and credit reporting problems. In Florida recently, a consumer lodged a complaint that EasyPay and TAB Bank ruined their credit over a puppy loan. They bought the puppy, brought it home and found it to be very sick and it died soon thereafter. Immediately after they found out the puppy was sick they went back to the store who refused to take back the sick puppy. So the consumer was left with no choice but to continue paying on the puppy or ruin their credit and fall into collections. Not only did they get saddled with spending thousands of dollars on vet bills to try and keep their new puppy alive, but they also had to deal with the emotional grief of their children when the new puppy died and then the financial hardship of having to pay $5,500 of principal and interest on a puppy with an original sticker price of $2,000.00. Recently, a Florida military veteran was in shock when they discovered they were being charged an interest rate of 130% APR for a dog. The Military Lending Act generally limits the interest rates charged to servicemembers and their dependents to 36%, but there are exceptions and this lending law doesn't apply to veterans, so the great majority of our servicemen and women are not covered. We will continue to follow up on this evolving story, but if you are in collections over a puppy loan call our firm today and we may be able to help.

About the Author

Sami Thalji

Sami Thalji is a native Floridian, born in Clearwater and raised in St. Petersburg, Florida. Sami graduated from Osceola High School in Seminole, Florida before attending and receiving both his Bachelor of Science and Juris Doctor from the University of Florida in Ga...

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