Elevate’s Elastic line of credit uses FDIC-supervised Republic Bank & Trust (Kentucky) to offer lines of credit of $500 to $4,500 in a number of states with an effective APR of up to 109%.
*Elastic’s website no longer discloses https://paydayloanstennessee.com/cities/gainesboro/ where the line of credit is available, but Elastic is no longer available in the District of Columbia as a result of litigation, and its FAQs previously noted that it was not available in 11 states: Colorado, Connecticut, Georgia, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Vermont, and West Virginia. Elastic was, and probably still, is available in many states that may not permit effective APRs as high as 109% on some or all lines of credit .
Applied Data Finance, doing business as Personify Financial uses First Electronic Bank, an FDIC-supervised industrial bank chartered in Utah (and owned by Fry’s Electronics), to enable installment loans of $500 to $10,000 with APRs as high as % in several states that do not allow that rate for some or all loans in that size range. Personify also lends directly in a number of states .
Wheels Financial Group, LLC dba LoanMart (under the ChoiceCash brand) uses FDIC-supervised Community Capital Bank (Utah) to make auto-title loans in several states, most of which restrict or disallow high-cost auto title lending. A sample loan formerly on LoanMart’s website was a 3-year, $3,000 loan at 170% APR with 36 monthly payments totaling $15,. LoanMart also makes auto-title loans directly in a number of states. LoanMart does not operate in other states.
Check ‘n Go offers the Xact installment loan through FDIC-supervised Capital Community Bank. The loans range from $1,000 to $5,000. Rates range from 145% APR to 225% APR. Xact loans are offered in several states that do not allow installment loans at those rates. Check ‘n Go also directly offers high-cost installment loans in several other states.
Other Consumer Rent-a-Bank Lenders
The payday lender Check Into Cash has started offering the CC Connect Installment Loan through Capital Community Bank. Loans go up to $2,400 and APRs can reach %.
American First Finance offers secured and unsecured installment loans through FinWise Bank for purchases at retailers including furniture, appliances, home improvements, pets, veterinarian services auto and mobile home repair, jewelry, body art. A sample loan is a $5,000 loan with 104 weekly payments of $, including 145% interest and a $250 origination fee, which is about 161% APR. The website does not disclose in what states AFF lends, but lawsuits and complaints indicate loans in states including North Carolina and Rhode Island.
CURO, which offers payday loans and high-cost installment loans through various brands including Speedy Cash and Rapid Cash, was piloting two rent-a-bank brands. Both used OCC-regulated Stride Bank. Avio offers online installment loans up to 130% APR and lines of credit. Verge Credit made installment loans up to 179% “will help us expand geographically, online and in some states where we – where we don’t operate right now.” But the programs stopped accepting applications in as Congress began focusing on rent-a-bank loans.
Small Business Rent-a-Bank Lending
World Business Lenders (WBL) uses a rent-a-bank scheme to make small business loans, often secured by the small business owner’s home. WBL’s website does not disclose where it lends directly and where it uses a rent-a-bank scheme. But lawsuits in Colorado, Connecticut, Florida, Georgia, Massachusetts, and New York have described rent-a-bank mortgages of $20,000 to $550,000, usually secured by the business owner’s personal residence with APRs of 75% to 139% or higher. World Business Lenders currently uses OCC-supervised Axos Bank (previously known as Bank of Internet), a federal savings association and previously used FDIC-supervised Bank of Lake Mills (Wisconsin) to attempt to evade state rate caps. World Business Lenders has been profiled for its predatory practices.
