Predatory Lending Firms Try To Cash In On #MeToo Movement
Payday lending firms are trying to cash in on the #MeToo movement, which has exposed numerous alleged sexual predators.
The New York Times reports that the payday lending firms are offering cash advances against possible settlements in sexual harassment lawsuits.
Largely unregulated payday lenders have a history of providing cash at sky-high interest rates to people who need money for living and medical expenses.
LawCash reportedly used this pitch to consumers: “Sexual abuse is a crime #HarveyWeinstein… if you or someone you know is in need of financial help.”
Christopher R. Janish, CEO of Legal Bay, said in a press release in October 2017 that his company had “set aside a large portion of their presettlement cash advance funding specifically for plaintiffs of sexual harassment cases.”
Legal Bay,claimed in November 2017 that it had a “special focus for victims of unwanted sexual advances.”
Janish told The New York Times: “It just really is more of a public awareness and branding thing.”
The settlement-advance firms make money by charging interest rates as high as 100 percent because the money is technically considered an advance, not a loan, and not under state usury laws.