Washington Post: Big Banks Engaging in Payday Lending, Report Says
Some of the nation’s largest banks are providing short-term loans with interest rates of up to 300 percent, driving borrowers into a cycle of debt, according to a new report from the Center for Responsible Lending.
Twelve million Americans use payday loans a year, taking out an average eight loans for $375 and spending about $520 on interest, according to a July report by the Pew Charitable Trusts. The think tank found that most borrowers use payday loans to cover living expenses such as utilities or rent, not unexpected emergencies. The average borrower is indebted about five months of the year.
Read the full article at washingtonpost.com.
- Safe Small-Dollar Loans Research Project