NEW YORK, NY (April 12, 2018) excerpt via ENTREPRENEUR - Online lenders are facing increased scrutiny as lawsuits and investigations uncover the sky-high interest rates, hidden fees and unsustainable repayment plans that can devastate small businesses.
Mark Abell reports in Entrepreneur that online lender Kabbage Inc. is being sued for allegedly partnering with a bank to offer interest rates that surpass the legal limit.
The state of New York may begin regulating online lenders after a Federal Reserve study determined that there was “significant potential for unscrupulous online lenders to exploit consumers through predatory practices such as unusually high interest rates, lack of disclosure of hidden fees, and unclear loan terms.”
