When state laws and regulations drive alleged “debt traps” to power down, the industry moves its online business. Do their low-income clients follow?
This season, Montana voters overwhelmingly authorized a 36 % price limit on pay day loans. The industry — the people who operate the storefronts where borrowers are charged high rates of interest on little loans — predicted a doomsday of shuttered stores and lost jobs. Just a little over a 12 months later on, the 100 or more payday shops in towns spread over the state had been certainly gone, since had been the jobs. However the story does end that is n’t.
The instant fallout from the cap on pay day loans had a disheartening twist. Continue reading “The Myth vs. the reality About Managing Payday Lenders”