Online Pew Center Study Includes Interactive Data on Payday Loans
California is among states with the least regulation of payday lending, allowing loans that if renewed repeatedly would sock borrowers with 391% annual interest rates or higher, according to a new study that classifies states as permissive, restrictive or in between.
The study was released Thursday by the Pew Charitable Trusts. In addition to state-by-state information, it provides a quiz to test readers’ knowledge of the payday industry, which operates over the Internet as well as out of storefronts in lower-income neighborhoods.
The report, based on a national telephone survey conducted from August 2011 through April, estimated that Americans spend $7.4 billion a year on payday loans, including an average of $520 in interest per borrower for eight $375 loans or extensions.
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