Move To Pull Customer Protection Rule Heightens Debate Over Payday Lending

Move To Pull Customer Protection Rule Heightens Debate Over Payday Lending

A medical assistant named Angela walked into a branch of Advance America at a strip mall and asked for a loan during a recent lunch hour in Springfield, Va. She’d borrow $300 and guarantee to pay it straight straight back within thirty days, with yet another $73 in interest and charges.

This loan would help protect a household visit to nyc, stated Angela, whom asked NPR to not ever utilize her final title for privacy reasons. She claims she prefers payday advances with credit cards and she would rather not approach her family for help because she doesn’t trust herself.

“Everyone’s struggling. Therefore, need not ask,” she claims.

It had been quick and convenient. All Angela needed doing ended up being show her ID and write a check dated for the time the loan had been due. To have her very first loan, she introduced a bank statement and spend stub, but she’s got applied for a few more loans since that very first loan — about two per year.

Angela can be a payday borrower that is unusual. The Consumer Financial Protection Bureau found that half of payday loans are in a sequence that’s at least 10 loans long, and the costs spiral in a 2014 report. Continue reading →