Payday loan limits passed - Concord Monitor- $300 Payday Advance
The bill’s supporters say that payday lenders target vulnerable people and make it difficult for them to climb out of debt because the interest rates are so high that borrowers have to take out a second loan to pay off the first one. The measure would cap interest rates on the small loans - which now top 500 percent in annual terms - at 36 percent a year. Payday loans are weeks-long loans of $300 to $500, secured with a pay stub and paid back with a flat fee that translates to an annual interest rate in the hundreds. Before yesterday, Lynch had voiced caution about the proposal, saying he thought 500 percent interest rates were unreasonable but saying he didn’t want to “ignore the need” for the small loans, which are often sought by people who’ve been turned away by banks. Find Out More
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