|
|
NEWS
RECALLS
COMPLAINT FORM
SCAM ALERTS
RESOURCES
Small Claims Guide Class Actions Lemon Laws FAQ Newsletters |
Share |
| Automotive Education Employment Electronics Family Finance Health Homeowners Insurance Pets Shopping Travel |
|
|
|
![]() |
Payday Lenders Prey on African-American Neighborhoods |
|||||||||||||
|
March 28, 2005
"This study shows in the starkest terms that African-American neighborhoods bear the brunt of predatory payday loans -- loans that are not even legal in North Carolina," said Mark Pearce, CRL president. "This confirms that the abusive loans made by payday lenders are not just an issue of fair and responsible lending, but are a civil rights issue as well." Payday lending is illegal in North Carolina, but large national chains such as Advance America, Check 'n Go and Check Into Cash continue to operate openly by affiliating with out-of-state banks which contend they are exempt from state law. Nearly 400 stores operate in North Carolina, even though state law hasn't permitted them since 2001. Currently, the North Carolina Commissioner of Banks and Attorney General are investigating payday lending activity. Because CRL looked at stores owned by the national chains, the report has implications far beyond North Carolina's borders. Twelve states, in addition to North Carolina, are subject to rent-a-bank arrangements because payday lending is not authorized by their state legislatures (Michigan, Georgia, Pennsylvania, Maine, Arkansas, Massachusetts, West Virginia, New York, New Jersey, Connecticut, Vermont, and Maryland). In fact, over 3,000 payday loans stores in the country are operating outside of the laws of their state. At a typical payday shop, a person short on money before payday borrows $255 by writing a postdated check for $300. After two weeks the borrower often can't repay the principal and writes yet another postdated check. Ninety-nine percent of payday loans are made to repeat borrowers, despite industry claims that the loans are for one-time, emergency use only. Advance America has reported that their average number of loans per borrower was 9 per year in 2003. CRL has previously estimated that predatory payday lending costs American families $3.4 billion annually, a cost that is increasing rapidly as the size of the market explodes. Report Your Experience
|
|||||||||||||
Back to the top | |
||||||||||||||
Advertisement
|
|
Custom Search
|
||||
|
AUTOMOTIVE Dealers Manufacturers Service Extended Warranties Lemon Laws Recalls Tires Transporters FAMILY Aging Children, Parenting Recalls Dating Education Entertainment Pets Weddings |
FINANCE Annuities Banks Credit Cards Debt Collection Debt Counseling Insurance Investing Loans Mortgages Payday Loans Student Loans Tax Prep HEALTH Doctors Drugs, Pharmacies Health Clubs Hearing Care Hospitals Nursing Homes Nutrition, Diets Vision Care Weight Loss |
HOUSE & HOME Appliances Cookware Furniture Home Improvements Lawn & Garden Movers Pools & Spas Realtors, Rental Agents Recalls Utilities ELECTRONICS Cable TV/DBS Cameras Cell Phones Computers Home Electronics Internet Access Local Phone Service Long Distance VoIP |
SHOPPING In-Home Online Retail Stores Sporting Goods Supermarkets Telemarketers TRAVEL Airlines Bus Lines Car Rental Cruises Hotels Travel Agents Trains RESOURCES Class Actions Complaint Form Small Claims Guide Lemon Laws |
CONSUMER NEWS Latest News Automotive Telecom Financial Health Homeowners Scams Seniors Travel More ... RECALLS Automotive Children's Products Drugs Food Household Products Sporting Goods ABOUT US FAQ Privacy Policy Advertise With Us Newsroom Syndication Terms of Use |
Terms of Use Your use of this site constitutes acceptance of the Terms of Use
Copyright © 2003-2009 ConsumerAffairs.com Inc. All Rights Reserved. The contents of this site may not be republished, reprinted, rewritten or recirculated without written permission. |
|