What's so bad about payday lending?
Payday loans trap customers in a long-term cycle of debt that leads to bigger financial problems, credit card debt, checking account overdrafts, closed bank accounts... even bankruptcy.
While bank payday loans are marketed as short-term solutions to a cash shortfall, borrowers have an average 16 loans per year at triple-digit annual interest rates. A quarter of bank payday borrowers are on social security.
More information on
bank payday lending
at the website of the
Center for Responsible Lending.