The REAL deal on payday loan fees

Payday lender Check N Go has issued a video that tries to set 390% interest as a reasonable standard. What they don't want you to know is that APR matters, whatever the loan term. And they don't want you to know that payday loans are designed to trap people in long-term debt. A 36% cap on annual interest forces all lenders to follow a reasonable standard. It's plenty high enough for any helpful and legitimate lending product out there.

Category:

Nonprofits & Activism

Tags:

• payday
• lending
• loan
• fees
• APR
• annual
• interest
• rate
• 390%
• 36%
• Check
• Go
• Center
• for
• Responsible

[warterra]

We've had loansharks here in NYC for longer than this kid's been alive and there are pawnshops around the country charging over 300% per year. So I don't think anything is going to change, ever, even if payday lending is shut down.

[duesiswild]

Your logic is flawed, NO company is going to loan a 100.00 for a year which is what is required to make that 36.00 on a 100.00 loan. With the 36% Cap on a 2 WEEK payday loan, which is the STANDARD term the company will make $1.48 for taking a risk of lending someone a 100.00. Makes makes no sense.