02 Jan Brief loans, high prices, regulator concerns Five hundred interest that is percent, and greater, are fueling
Five hundred % interest rates, and greater, are fueling a profitable and controversial brand brand brand new economic service: one-week loans to hopeless individuals with constant jobs and bad credit.
Check-cashing businesses have discovered a lucrative sideline cashing postdated individual checks for hefty charges. Other programs have sprung up to accomplish nothing but make short-term payday loans, also called payday advances.
Customer advocates call it loan that is old-fashioned, and state banking officials state a number of the businesses are breaking what the law states.
"It is not merely financing; it really is predatory financing," stated John Willard, that has pursued many of the businesses as supervisor of investigations for the Florida Comptroller's southeast Florida workplace.