More controls urged on payday lenders
The one-time fees translate into exorbitantly high interest rates on a standard annual-percentage-rate basis, sometimes as much as 800 percent. … The average payday borrower pays back $793 for a $325 loan, the report said.
December 4th, 2006 at 8:03 pm
This study is very irresponsible and misleading. When you factor all fees that banks, utilities and credit card companies charge, as an APR, you find a payday loan is the cheapest and lowest APR. A payday loan is the most resposible financial choice for a large number of people, which is the reason that this business model thrives. You will never read that most of the clientle are educated and make more money than the national average. This has nothing to do with being “loan sharks” and everything to do with helping people out of a temporary jam, at the lowest cost.
December 26th, 2006 at 10:19 am
Usury is how I made my millions. That and stealing wallets from murder victims. Surprisingly, it’s a good way to make extra cash.