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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forums6 Outrageous Facts That Show How Payday Lenders Screw Consumers
- In the U.S., 12 million people borrow nearly $50 billion a year through payday loans.
- The rates charged on payday loans can be up to 35 times those charged on credit card loans and 80 times the rates charged on home mortgages and auto loans.
- Most borrowers owe payday lenders for five months out of the year and typically end up paying $800 for a $300 loan.
- The estimated annual percentage rate on payday loans in the U.S. ranges from a low of 196% in Minnesota to a high of 574% in both Mississippi and Wisconsin.
- Borrowers with six or more loans each year make up more than half of all payday revenues in California, and they end up paying at least $525 for a $255 loan.
- Payday loan stores tend to aggregate in areas with higher rates of poverty. The six counties in California with the highest number of payday lender stores per 100,000 people have an average per capita income of between $17,986 and $26,300, compared to the statewide average of $44,980. The average unemployment rate among those counties is nearly 15.8% compared to the state average of 11.8% and one in five people lives in poverty compared to 15% nationally.
Read more: http://www.businessinsider.com/outrageous-facts-about-payday-loans-2013-10
Usury.
Benton D Struckcheon
(2,347 posts)noiretextatique
(27,275 posts)and it is usury. the place where i live charge @500% for payday loans. just another poverty industry rip-off.
notadmblnd
(23,720 posts)Pay day lenders are lower than pond scum in my book. Screwing the people who protect their right to screw the poor, it's beneath despicable.
noiretextatique
(27,275 posts)and it is about time for legislators to do something about it. i am not surprised they feed off military personnel. i work in a poor area and there's one of those bloodsucking check cashing places on just about every block. now there are some non-profit check cashing places opening here, and they don't charge outrageous interest rates.
upaloopa
(11,417 posts)Like phone calls or bank transactions
Washing clothes at the laundra mat driving a clunker that can't pass up a Many Moe and Jack's because it drinks as much oil as gas
Then there are those fixit tickets that you can't pay and the lost pay to go to the doctor because you have no benefits
Been there done that