Dynamic Accident Lawyers: Payday Loan Company Stock Plummets Following News of Investigation

World Acceptance Corporation is a company that offers short-term loans and credit insurance. Their website boasts, “Getting a Loan is as Easy as 1-2-3!” and says most loan applications are approved within an hour.

The company is facing rough waters, however, as its stock recently plummeted by more than a third after the company confirmed that a government watchdog agency is investigating its lending practices and may ultimately take legal action. World Acceptance Corporation trades on NASDAQ under the symbol WRLD.

Consumer Financial Protection Bureau

World Acceptance may not be alone in facing an investigation. The Consumer Financial Protection Bureau (CFPB), an independent agency that was formed in 2011 at President Obama’s urging as a response to the financial crisis of 2007-2008 and the Great Recession that followed, is ramping up examination of payday and other ‘small dollar high cost’ lenders.

Subprime lending has shifted from banks to nonbank lenders since the crisis, and the CFPB seems intent on enforcing rules to keep these nonbank institutions from preying on lower income consumers.

According to their website, the CFPB is a “21^st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives.”

Short-Term Loans, Cash Advance Loans and Payday Loans

Short-term loans are also referred to as a cash advance, cash advance loans, payday loans, advance payday loans, fast cash, emergency loans or quick cash loans. The idea sounds like a great one for those who are strapped for cash but know they will have some money coming in within the next couple of weeks to pay off the short term loan.

The execution of the great idea is what seems to get consumers into trouble and gives them more than they bargained for. These loans often charge exorbitant rates, such as up to a 400 percent interest rate. Many of the loans also assess outrageous fees. If consumers don’t fully understand the terms, these “short-term” loans can sometimes be paid back over months or years, leading to much higher payments than the consumer anticipated.

One big player under fire for this kind of lending behavior was Western Sky Financial. Western Sky loans recently settled (along with lender CashCall) for $2.2 million dollars for charging illegally high interest rates to consumers in Michigan.

Payday loans under various names have been outlawed in many states after lenders took advantage of consumers by getting away with very unethical practices.

Payday Loan Lawsuit Information

Lawyers are investigating whether payday lenders are breaking applicable laws, and are available to represent people who have been harmed by this practice.

If you have taken out a pay day loan or received a cash advance from lenders such as Western Sky, World Acceptance, Cash Call, Great Plains, First International SRS or any other company, you may have a legal claim. Our attorneys can advise you on what your options are through a free consultation to discuss your individual circumstances.

Join a Free Payday Loan Class Action Lawsuit Investigation

If you took out a payday loan in Connecticut, New York, Vermont, Florida, Georgia or New Jersey, you may be eligible to participate in a free class action lawsuit investigation.

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