ADADLoans to consumers at Wellshire’s auto-title loan stores can carry a 350 percent annual rate, thanks to high fees and interest supercharging the cost of borrowing, according to corporate disclosure documents. At first glance, Wellshire’s ownership of title loan stores appears to disqualify it. ADADWellshire, despite operating title loan stores, does not actually earn money from loan interest payments, according to Fieldpoint. So LoanStar Title Loans does not technically earn interest on loans. The relationship between the title loan store and the outside lender is extremely close, blurring the distinction between the two, Baddour said.

Source: Washington Post November 23, 2020 10:52 UTC