A Message from Consumer Action

Consumer Action's MoneyWi$e educational materials have moved to our Managing Money Project website. Here you may view, download and order bulk copies of the MoneyWi$e materials. Please make a note of the Managing Money Project address— www.managing-money.org —and add it to your address book.


How private equity firms make money on loans to cash-strapped Americans

Source: Peter Whoriskey, Washington Post (Paid Registration)

Over the past decade or so, private equity firms, which pool money from investment funds and wealthy individuals to buy up and manage companies for eventual resale, have taken stakes in companies that offer loans to people who lack access to banks and traditional credit cards. Some private equity firms have bought up payday lenders. Other private equity firms have taken stakes in “consumer installment” lenders, which offer slightly larger loans—from about $1,000 to more than $25,000—for longer periods of time.

These lending companies have undergone significant growth in recent years. To raise more money to lend, they have sold bonds on Wall Street.

Read Full Article: How private equity firms make money on loans to cash-strapped Americans

 
 
 

Quick Menu

Support Consumer Action

Support Consumer

Join Our Email List

Optional Member Code
Facebook FTwitter T

MoneyWise Modules

Managing Money Topics

Help Desk

Advocacy