Payday Lenders Target Main Street Ohio
A CBS news article discusses online payday lenders using the financial crisis to their advantage. Apparently, the nation's predatory payday lenders are set to cash in on the misfortunes of Ohioans struggling to make ends meet as the credit market tightens.
"As Wall Street is reeling from years of easy credit it couldn't afford, online payday lenders are targeting Americans on Main Street with easy credit options that can leave consumers swimming in new debt."
An earlier post about the financial crisis received critical remarks from payday lenders asking, "Who has been saying payday loans are the answer?" Well, here's your answer: the payday lending industry!
It's in the form of an ad from Ezpaydaycash: "With the recent credit crunch, traditional banking institutions have ignored your needs."
Jean Ann Fox of the Consumer Federation of America is quoted in the article: "In the last week I've started seeing more online payday lenders urging people that payday loans are the solution."
"The $5 billion a year online lending industry is lucrative. Cash America, a payday advance storefront company, attributes a $160 million bump in last year's revenue to acquiring online lender CashNetUSA.com according to SEC filings."
"Complaints are widespread. CBS News has learned that Attorneys General in at least fourteen states have received complaints about online payday lenders in the past year. Consumers say some lenders make illegal automatic bank withdrawals after loans are paid off and harass borrowers."
Payday loans are NOT the answer! With over 300,000 Ohioans trapped in debt, paying over $300 million in interest and fees, most borrowers end up much worse off than before they took out payday loans! Ohio's payday lending reform law, which passed in June, requires that online lenders comply with the state regulations.
To read the rest of the article, please click here: http://www.cbsnews.com/stories/2008/10/21/cbsnews_investigates/main4537420.shtml
VOTE YES ON ISSUE 5!
blog comments powered by
Back to blog
|