The Los Angeles Clippers recently announced a multi-year sponsorship deal with 1-800LoanMart, a car title lender whose loans come with triple-digit interest rates.
The APR on 1-800LoanMart’s car title loans can reach 180%, even though the loans are secured by borrowers’ cars. In addition to being high-cost, car title loans are designed to trap borrowers in costly long-term debt. Many working families end up choosing between making the high-interest payments on their loan or losing their car.
1-800LoanMart peddles high-cost, dangerous products that cost low- and moderate-income families thousands of dollars and put their primary source of transportation on the line.
The Clippers can and should do better. Clippers fans deserve better too. It is bad enough that 1-800LoanMart is able to charge triple-digit interest rates. But for the Clippers to embrace 1-800LoanMart's sponsorship suggests that these types of predatory loans are not only legitimate, but a good solution to a financial setback.
They are not. The L.A. Clippers should bench 1-800LoanMart today.