SJ&G Attorney Prevails Against Predatory Loan Company

In November 2020, Stranch, Jennings & Garvey (formerly Branstetter, Stranch & Jennings) member Karla Campbell won a case against Advance Financial that recovered thousands of dollars on behalf of a client who was coerced into a loan with 279% APR. 

Advance Financial is a Nashville-based company that provides 24/7 cash loans and other financial services in Tennessee, along with online loan services in other states. The company changed its primary business model from short-term to medium-term consumer loans. In doing so, it often pressured customers with short-term loans into medium-term loans with much higher interest and fees. 

Campbell obtained summary judgment in arbitration on her client’s breach of contract claim after Advance Financial forced her to roll her short-term loan into a medium-term line of credit with onerous terms. The company fought the claim for years, but an arbitration panel appointed by the U.S. District Court ultimately confirmed the award.

“Advance Financial took advantage of this woman, plain and simple,” Campbell said. “Rather than just making it right, they fought her in court and in arbitration for more than three years. We are proud to have held them accountable for this predatory practice and pleased to have obtained the recovery that our client deserved.”