Regulators squeeze the industry
IN-MAY 2013 Gloria James borrowed $200 from Loan Till Payday, a loan provider near her house in Wilmington, Delaware. As opposed to sign up for a single- or two-month loan for the $100 charge, as she had done many times before, she was provided a one-year loan that will set her back $1,620 in interest, equal to a yearly price of 838%. Ms James, a housekeeper making $12 an hour or so, decided to the high-interest loan but quickly dropped behind on her behalf re re re payments. After filing case in federal court, a Delaware judge ruled that the mortgage at issue had not been just unlawful but вЂњunconscionableвЂќ.
Her tale is remarkably typical. Continue reading