Although payday lending is still available, I see less debtors filing bankruptcy as a result of these loans. In the past, payday lenders forced many debtors to file bankruptcy. Many of my clients were adversely affected by this “Godfather of Payday Lending”
Payday Lending – Debtors File Bankruptcy – Payday Lender Goes on Criminal Trial:
- Charles Hallinan was a former investment banker.
- Hallinan was head of payday lending from 1997 from 2013.
- Hallinan owned, operated and financed companies that issues small-amount, fixed-fee loans and collected debts in excess of $690 million
- The media called him: “the Godfather of payday lending”.
- His entire business model was built on trapping victims in an endless debt cycle.
- He preyed on struggling borrowers.
- However, Hallinan claimed in his defense: Since he forged relationships with Native American tribes across the country, (federally recognized groups — which hold sovereign immunity to set their own regulations on reservation lands) — his business could operate nationwide.
Bankruptcy Court & Criminal Ruling:
- Charged fixed rates far in excess of what was permitted under states’ usury laws (caused debtors to file bankruptcy).
- Hallinan was nothing more than a loan shark.
- Hallinan ordered to pay a forfeiture money judgment in excess of over $64 million.
- In addition, he was required to forfeit his interest in 1.2 million in funds in 18 bank accounts; two Mercedes Benz vehicles; one Bentley vehicle; and his Villanova, PA mansion.
- Convicted of all 17 counts
- His fines amount to $2.5 million.
- Most importantly, his sentence is 14 years in prison
- Judge described deals that Hallinan struck with Native American partners as: “unlawful, a sham, and a fraud.”.
Hallinan’s payday has come. His unlawful and fraudulent lending practices caused many debtors to file bankruptcy.
He is currently housed in the same prison as Bernie Madoff (who died on April 14, 2021).
Debtors who reach the maximum they can borrow, seek out payday loans. If you have payday loans or any loans that you just cannot pay back, I am here to help you with bankruptcy protection.
I am a Board Certified Bankruptcy lawyer. I offer a free bankruptcy consultation to see how I can help you. Call me today – get out of debt.