NEW YORK (CNNMoney.com) -- At the East Side Organizing Project in Cleveland, six home owners recently went in for group foreclosure counseling. When asked if any had taken out payday loans, four hands shot up.
A payday loan is a small-dollar, short-term loan with fees that can add up to interest rates of almost 400 percent. They're generally taken out when the borrower is caught short on cash and promises to pay the balance back next payday.
If it sounds like legal loan-sharking, it's not. "Loan sharks are actually cheaper," said Bill Faith, a leader of the Ohio Coalition for Responsible Lending.
The industry portrays it as emergency cash, but critics say the business model depends on repeat borrowing where the original loans are rolled over again and again.
http://money.cnn.com/2007/12/13/real_estate/payday_lending/index.htm?postversion=2007121412
Saturday, 15 December 2007
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1 comments:
Predatory Capitalism at its finest.
The financialization of a country always increases it strangle hold at the beginning of hard times or the end of an Empire. Pushing paper to generate hollow dollars produces a hollow economy. Look up quick!
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