DALLAS–(BUSINESS WIRE)–UNITE HERE announced that 32 consumer advocacy and fair lending organizations are calling on Lone Star Funds to end predatory payday lending. The organizations published an open letter calling for fair lending practices at Lone Star Funds’ DFC Global, a major payday lender.
“Today, we’re calling on Lone Star Funds to stop trapping borrowers in a cycle of debt.”
The full letter can be found at www.LoanSharkFunds.org.
Lone Star Funds purchased payday lender DFC Global through its Lone Star Fund VIII vehicle in June 2014. Through DFC’s Money Mart and Check Cashing Store brands, Lone Star Funds and its limited partners profit from abusive lending practices that trap borrowers in a cycle of debt. DFC Global has advertised loans with APRs of over 300% in some states.
In their letter, advocates call on Lone Star Funds to require DFC Global to abide by the Federal Deposit Insurance Corporation’s Small-Dollar Loan Guidelines, which suggest common-sense standards for these types of consumer loans.
“Today, we’re calling on Lone Star Funds to stop trapping borrowers in a cycle of debt,” said Gynnie Robnett, campaign director at Americans for Financial Reform. “Lone Star and its investors should not be profiting from abusive practices.”
The letter is also being sent to several of Lone Star Funds’ key public employee pension fund investors, many of which own DFC Global through their interest in Lone Star Fund VIII.
Elliott Mallen, 312-656-5807