The Myth vs. the reality About Managing Payday Lenders

The Myth vs. the reality About Managing Payday Lenders

Whenever state laws and regulations drive alleged “debt traps” to power down, the industry moves its online businesses. Do their low-income clients follow?

This year, Montana voters overwhelmingly authorized a 36 per cent price cap on pay day loans. The industry — individuals whom operate the storefronts where borrowers are charged interest that is high on tiny loans — predicted a doomsday of shuttered stores and lost jobs. Only a little over a year later on, the 100 approximately payday shops in towns spread over the state had been certainly gone, as had been the jobs. Nevertheless the story doesn’t end here.

The fallout that is immediate the cap on pay day loans had a disheartening twist. Continue reading “The Myth vs. the reality About Managing Payday Lenders”