Teacher $200 pay day loan forced us to brink of bankruptcy

With bills turning up, her credit shot, and an option looming each and every morning of whether or not to invest her final bucks on meals or on gasoline to make it to work, senior high school science instructor

went online looking for economic hope.

Search engines led her towards the web site of a business called MyNextPaycheck. And in a few minutes, $200 had been deposited into her bank-account — a short-term loan to cushion her until her next payday.

It seemed too good to be real, she told a federal jury final thirty days.

It had been. Within months, she had been bankrupt.

Schmitt’s battle to spend back that initial $200 loan, by having a yearly rate of interest of a lot more than 350 %, is merely among the witness accounts federal prosecutors in Philadelphia have actually presented inside their racketeering conspiracy situation against Main Line business owner

, a payday lending pioneer whom counted MyNextPaycheck as one greater than 25 loan providers he owned.

For the test, which joined its 3rd week Tuesday, federal federal government attorneys have actually looked for to draw an obvious comparison between Hallinan — who lives in a $2.3 million Villanova house with a Bentley when you look at the driveway — and borrowers like Schmitt, whose incapacity to cover her $200 financial obligation quickly pressed her nearer to economic spoil. Plus »