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Private lending firms exploit low-income Americans who are often pushed further into poverty after high-rate loans
. One of these companies, Mariner Finance, belongs to a private equity fund run by Warburg Pincus, a New York company, The Washington Post Post reported on Monday. This firm is headed by former Treasury Secretary Timothy Geithner, who, while working for the Obama administration, said predatory lenders unfairly planked vulnerable Americans with "absurdly complex and opaque" agreements. deliberately risky
. Lenders like Mariner Finance did not stop them from expeditiously expanding their efforts to target short-term people. The Post reports that Mariner sends unsolicited checks with interest rates of up to 36% in a "Mail Loan" program. After specifically targeting people with low credit scores, the firm will aggressively search for borrowers in collections, pursue them and demand that they pay the cost of Mariner's lawyers
"C & Is basically a way to monetize the poor, "said John Lafferty. a former employee of Mariner Finance.
Mariner Finance states that it offers "significant service to tens of millions of Americans who might otherwise not have secure and accountable access to credit". Warburg Pincus insisted that Mariner offers products in a "transparent" way with a "clear disclosure", highlighting the company's good reputation in reviews by state regulators. Read more on The Washington Post . Summer Meza
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