NEW YORK--(BUSINESS WIRE)--
"On June 27th, shortly after LoanReverse went live, the Online Lenders Alliance, the powerful lobbying group allegedly backed by wealthy, illegal lenders, issued Consumer Financial Advocates, the company that owns and operates LoanReverse, a cease and desist request due to the OLA's 'concern that LoanReverse's activities will reflect poorly on the industry as a whole'," stated Alex Shogren, co-founder and president of Consumer Financial Advocates.
"They are referring to the online payday loan industry, of which 90% of the loans issued are believed to be illegal," continued Shogren. "Lisa McGreevy, OLA's president, said of the cease and desist request, 'adherence to the OLA Best Practices - by members and nonmembers - is the most effective way to minimize regulatory enforcement activity as well as unflattering and demonizing media articles.'"
Shogren continued: "Clearly the OLA is threatened by our business model. LoanReverse represents a clear and present danger to the illegal, online lending industry. In just three short weeks, we have been able to refund and save over $15 million for our customers who had no idea they were tethered to an illegal payday loan."
LoanReverse has built proprietary software and algorithms that allow customers to differentiate legal and illegal loans based on State law, the licensing status of the lender and by a number of other factors. The 100% secure, easy-to-use website gathers a borrower’s loan information, establishes his or her eligibility for a refund and then contacts the financial institution to facilitate the “loan reversal;” recovering interest, fees and principal while ending the lender’s unlawful withdrawals of interest and principal from the borrower’s account.
“The jig is up for illegal lenders,” continued Shogren. “But the OLA, through direct threats to industry participants and marketers, have been fairly successful thwarting our marketing efforts. The most effective way for LoanReverse to change the lives of millions of hard-working Americans by helping them get refunds on their illegal loans, release them from the obligation of principal repayment and stop predatory lenders from ever debiting their account again is through legal payday lenders and payday lead generation companies. The OLA’s threats and strong-arm tactics have made that difficult…but do reveal the OLA is concerned with protecting illegal lenders at the expense of legal lenders, not to mention the millions of Americans who mistakenly believe they are trapped in a never ending cycle of debt.”
“LoanReverse.com poses zero threat to lenders operating within the law,” said Shogren. “Indeed, legally operating lenders can expect their business to increase dramatically as consumers shift away from illegal loans from illegal lenders to legal loans from legal lenders.”
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Alex Shogren, 704-271-4295