Facing an expensive car repair is bad enough. But repair shops across the nation – including national brands AAMCO, Big O Tires, Grease Monkey, JiffyLube, Meineke, Midas and Precision Tune Auto Care – are steering people to a predatory lender that engages in a variety of questionable practices and charges up to 189% interest in states where that rate is illegal.
A rogue bank in Utah, Transportation Alliance Bank (TAB Bank) is helping EasyPay Finance make usurious loans that it could not legally make directly. Most states have interest rate limits to stop predatory lending. But lenders like EasyPay Finance evade state laws by laundering their loans through banks, which are exempt from state rate caps. “Rent-a-bank” schemes are of questionable legality, and have been challenged in court, but they persist.