Her rent at a seniors-only apartment complex plus utilities and monthly payments for two larger loans totaled about $2,600.
LoanMe payments added $495, bringing her total obligations to $200 more than her monthly income. And that’s without even considering her medical bills, or food, cable, internet access and other miscellaneous expenses.
In an emailed statement, LoanMe’s Williams said bank statements and a credit check indicated that Hesson had enough income after other loan obligations to make her monthly payments. It’s not clear whether LoanMe considered basic living costs or knew Hesson’s income had recently changed. Williams did not respond to follow-up inquiries by The Times.
A year ago, he lost a seasonal job at a West Hollywood hotel and needed cash to pay rent and a medical bill. With a poor credit score and limited options, he turned to Elevate. He said he originally wanted only $1,500, but Elevate doesn’t offer loans that small andapproved him for $3,000 at 224% APR. The 28-year-old took it, thinking the extra money would give him time to find a steady job – which he eventually did as a manager of a Koreatown seafood restaurant. He also worked to pay off the loan two months early.
“The nature of this loan,” Jeon said, “it’s not good to be making minimum payments.”
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