Payday lenders are gouging needy people, Charging Up to 780% Interest Amid virus Panic

Are Charging Up to 780% Interest Amid Coronavirus Panic:

should be jailed for that!

www.vice.com/en_ca/article/5dmnex/payday-lenders-are-charging-up-to-780-interest-amid-coronavirus-panic

Can’t for the life of me, who is not smart enough to ignore this kind of lender!!

Worse than the Mafia! Maybe these crooks are outlawed in some states, but whew, when people dont realize u cant borrow from paul to pay peter…….trouble is brewing!

 

A payday loan is a cash advance on a paycheque or government assistance like the Canada Emergency Response Benefit (CERB). All you need is a pay stub (or proof of income), an address, and bank account information. It can be done online and can take just a few minutes.

But they are the most expensive credit available. According to the U.S. Consumer Financial Protection Bureau, interest charged on these loans over a year ranges from 260 to 780 percent. A recent report by the think tank Canadian Centre of Policy Alternatives (CCPA) shows that payday lenders charge the maximum they can get away with under provincial laws—up to 652 percent over a year in Prince Edward Island and 391 percent interest over a year in Ontario, Alberta, British Columbia, and New Brunswick.

In the U.S., the short-term loan industry is just as lucrative. In 2015 payday borrowers, often people with bad credit or few options, paid more than $60 billion in fees and interest. Things are even worse under President Donald Trump, who rolled back consumer protections and gutted the federal agency tasked with fighting predatory lending.

 

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h/t savcash