Trapped in Debt: Payday lenders, Tennessee politics, and fallout from the 'flex loan'

Predatory lending practices are not new. Think salary buying and loan sharks of the late 19th and early 20th centuries.But the modern version was born in the 1990s right here in Tennessee. Sometimes called "payday loans," many who use the service are in a financial crisis and need quick cash — often leading to a trap of high interest debt. Today we speak with Tennessee Lookout reporter Adam Friedman, who along with ProPublica, uncovered the scale of this lending model, the hidden dangers of the latest version called the "Flex Loan," and the toll the practice has taken on Tennesseans.  Note: We reached out to Advance Financial. A representative declined to come on the show. Anyone with issues related to Advance Financial, Harpeth Financial or another flex loan lender should call 615-270-6861 to share their experience.This episode was produced by Mary Mancini.Guests:Adam Friedman, reporter, Tennessee LookoutErin Akery, senior manager, Nashville Financial Empowerment Center at United WayRep. Mike Sparks, Tennessee General Assembly, District 29, part of Rutherford CountyMike Stewart, former state representative; attorneyFurther reading and listening: This lender said its loans would help Tennesseans. It has sued more than 110,000 of them. (Tennessee Lookout) Tennessee lawmakers and lenders said this law would protect borrowers, but it trapped them in debt (Tennessee Lookout) NashVillager Podcast: Predatory lending (WPLN) Usury Country: Welcome to the birthplace of payday lending (Harper's)