By joining up with out-of-state banks U.S. payday lenders are bypassing ad bans on Google and Facebook and marketing loans that typically carry annual percentage rates of around 200% to 500% to consumers looking online for financial help amid the biggest wave of job losses in U.S.
Loans Almost Impossible to Pay Off Izetta Ferguson, 55 years old, of Charleston, S.C., said she needed $1,500 to pay for an unexpected car repair last year. Ms. Ferguson, a caregiver for a local organization that provides services to the disabled, said she did a Google search along the lines of “help with my loan even though my credit isn’t good.” That led her to Credit Sesame, a California-based company with millions of customers that offers free credit scores and loan-comparison services. It earns revenue if borrowers click on its links, then sign up for a loan. Ads for Credit Sesame appeared in the results of online searches done by the Journal of the type that a desperate borrower might do.