James Hollis can say goodbye to predatory loans with triple-digit interest rates.
After USA TODAY on Nov. 3, six good Samaritans across the country identified Hollis, who lives on social security disability and $23 a month food stamps, and the $3,050 car he acquired. I wrote about the right loan. Fixed transmission bug.
Hollis was overwhelmed by the generous offer on Monday, with Lorne Lavigne, an Encino, Calif. dentist who owns a dental technology company, covering the tab.
“I feel a great sense of relief,” said Hollis. “I didn’t know what to do. I was stuck.”
Hollis began parking his 2006 Ford Crown Victoria (a converted former police cruiser) sideways in a carport in Tucson, Arizona.
Lavigne, who said she had provided free dental care abroad on her humanitarian trip, said she wanted to help Hollis and was surprised at the interest rates of about 155% and 202% on the car’s title loan.
Interest on these loans totaled $10,741, and records show that if Hollis paid it off over several years, the total bill would be close to $14,000.
“It felt awful,” Lavigne told USA TODAY. I understand that the interest is 200%, but is it over 200%?What if the interest on the loan is 200%?”
USA TODAY wrote about Hollis considering a high-interest loan. It’s becoming common across the country for critics and supporters to agree. Driving the trend is staggering rate of inflation Grab low paid workers who need help paying to buy in batches.
The story also reported on a small bipartisan group in Congress We want to reduce the cost of these loans by passing a national law capping interest rates at 36%. This is the largest loan ever made to an active-duty military member or family member since the law was enacted 16 years ago.
Hollis received offers from five other strangers, including a woman who wanted to take a collection at her church. He said that he had kindly told him about it.
Lavine was able to pay off a large loan of nearly $2,600 directly, but said companies with smaller loans would only get paid from Hollis. So Lavigne said she mailed him a check.
Lavine said he was “nerved” by the USA TODAY article and initially intended to pay only part of the loan. I was ‘broken’ by seeing , and decided to pay it all back.
Lavigne said another reason he wanted to help was to be a good role model for his 16-year-old son, Jake.
“I find joy and joy in helping others,” Lavigne said. “I want him (Jake) to be a good person, helpful, kind and respectful.”
A significant portion of Hollis’ limited income was used to pay the $427 monthly loan. He said he now has enough money to pay his bills and buy Christmas gifts for his family.
And his days of taking out title loans on cars are over.
“I will never do that again,” said Hollis. “Not at all.”
Has been updated