Godfather of Payday Lending

Source: philly.com

Charles Hallinan was a Main Line investment banker.  He built a lending empire which preyed on the financially strapped.  He was sentenced to a 14 year federal prison term and was fined more than $64 million.  He was convicted of 17 counts to include racketeering, international money laundering and fraud.

Hallinan’s attorney plead that his sentence should be reduced as his client is 77 years old and the sentence of 14 years would most likely mean that he would die in prison.  The judge rejected the attorney’s appeal saying “It would be a miscarriage of justice to impose a sentence that would not reflect the seriousness of this case.  The sentence here should send a message that criminal conduct like (this) will not pay”.  The judge’s decision was probably prompted by the defendant’s unrepentant attitude during the sentencing.  Probation officers assigned to the defendant commented that the defendant was ‘exactly the opposite’ of contrite.

Source: philly.com

Above is the disclosure of credit term for one of the short term payday loans offered by Hallinan.  What should grab your attention is the amount of the APR, 1,825%.  I am not overly sympathetic with the borrows as it is their own responsibility to understand what their are agreeing to prior to signing the loan agreement.  On the other hand, I am in agreement with the judge’s decision to sustain the defendant’s attorney’s request for leniency.