Loan sharks hooked - WALB.com, Albany News, Weather, Sports

Loan sharks hooked

September 13, 2004

Bainbridge - Five pay day loan companies in Bainbridge are out of the loan business, at least for now. Assistant District Attorney Joe Mulholland says the companies put people further in debt. Mulholland says, "The fact of the matter is, it's illegal, it's a never ending cycle and realize that these debts are set up for the people who have no other options and won't ever get out of debt."

A business that preys on people with bad credit. Wayne Josey needed some quick cash, so, in April he got a $300 loan. He's paid more than twice that back. Josey says, "I got $300 from them and my figures around $750 that they've taken for only $300."

We went to some of those businesses to ask why they were charging more than the legal amount of interest. First Cash Title Pawn declined an interview. Kool Kash was closed.

Like Kool Kash, First American Cash Advance is closed and people who have lost money to this type of business, hope they stay closed for good. "I hope they shut 'em down permanently if they're doing something illegal," says Josey.

Mulholland says if these predatory lenders continue to take advantage of people, the lenders, not the borrowers will become the prey. "These are nothing more than loan sharks and we are going to go fishing for sharks if we have to," says Mulholland.

As for Wayne Josey, he'll never use a pay day loan company again. He says, "It's not worth it, not worth the headache." Or the bank ache that comes along with it.

Prosecutors executed search warrants at Five companies in Bainbridge. They are Cash 2 you, Money Now, B & W's Kool Kash, First American Cash Advance and First Cash Title Pawn.

posted at 5:04 PM by karen.collier@walb.com

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