Payday Lending = Predatory Lending
Did you know that Illinois law permits payday loan stores to charge borrowers up to 400% interest rates?
This means a single mother taking out a $500 loan to make ends meet will end up paying back $800 on that same loan.
More info? blog CAP36.org or facebook: http://tinyurl.com/4ywfkd6
THAT AIN’T RIGHT!
150 IPA members protest payday lender, Peoria IL
We can’t fix our economy until we figure out how to stop this curse of payday lenders. You’ve seen the TV ads and received their junk mailings for easy cash loans. What they don’t tell you is they trap the desperate into a cycle of financial debt.
For more in depth information on payday lending from a nation perspective go to: Center for Responsible Lending
Quick Facts:
* Big Banks, like Bank of America, finance payday loan stores. The Big Banks essentially use our taxpayer money to do it. Bank of America received billions in taxpayer bail-out funds and turned around and lent millions to Advance America (nation’s largest payday lender). Advance America loans this money back out to hard working Americans at 400% interest. Read “Predators Creditors” report here
* Payday lenders would lead us to believe they are an indispensable part of society, but they are a relatively new and bad development in Illinois history. lllinois used to have “usury” laws, which limited the amount of interest rate that could be charged. With deregulation of the financial industry in the 1980′s this interest rate cap was removed. People needing short term loans borrowed from family members or made payment arrangements.
* Payday loan stores are not banks. They are “non-bank financial entities”. This means they aren’t regulated by banking agencies and their “customers” don’t have the same protections as bank customers have.
There is Power in People to make change. You can join the campaign to stop payday lenders’ abusive interest rates.
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FIGHT PAYDAY LENDING TOOLBOX
Click toolbox graphic for zip file of all documents (4.7 megs)
Bailed out banks have role in payday lending Letter to the Editor, Pantagraph, Bloomington, IL“I was talking the other day to some friends about payday loan stores. They were unaware that the source of funds for these stores is the big banks — the ones we tax payers bailed out. In fact the two of the biggest providers of money to the payday loan stores are Bank of America and J. C. Morgan Chase…”
Cities should cap rates on payday loans, Letter to the Editor, Pantagraph, Bloomington, IL
“After retiring from my Kansas medical practice, I became a consultant and volunteer with the employee assistance program at a Wichita hospital. Staff members with all kinds of problems presented themselves for help. But the cases which were the most difficult to manage involved individuals near the bottom of the pay scale trying to make ends meet…”
Cap interest rates on payday loans, Letter to the Editor, Pantagraph, Bloomington, IL
“Not in our towns!” That’s my reaction to learning that in Bloomington-Normal, payday lenders are charging exorbitant interest for loans to some of our most vulnerable citizens…”
Ban payday loans with high interest, Letter to the Editor, Pantagraph, Bloomington, IL
“There are people suffering in Bloomington-Normal and we can help. Poor residents in our community, especially single mothers, are finding that they are unable to buy food or medications because they have taken out a payday loan at 400 percent interest to pay for rent or other necessities.…”
Easy money promises often lead to problems, Letter to the Editor, Pantagraph, Bloomington, IL
“Let’s face it: We aren’t always aware of what flows through the sewers. One particular outrage plaguing us is the payday loan business…”