Letter to the Editor - Montana's members of Congress should support stopping unfair lending
Last updated 2/5/2020 at 8:47am
A Google search or Netflix documentary will tell you, payday loans are predatory. Lenders offer small loans with interest rates averaging over 390 percent. CNBC reports loans in Ohio, Kentucky, Texas, Nevada, Utah and Wisconsin with rates from 500 percent to 600 percent, targeted toward underbanked people experiencing unforeseen financial hardships.
The Consumer Financial Protection Bureau found that over 80 percent of payday loans were rolled into new loans after two weeks. This catches people in a cycle where little money is paid to the principle, instead payments cover rollover charges...