Nov 13 2007
LIFE SAVERS OR LOAN SHARKS?
It’s not weird to hear someone was charged a high interest rate on payday loans. Well in this day and age trusting someone to repay you back money that he has borrowed to clear his debts, well you will be well reassured it wont be paid back in time. Many of those in the business of loaning cash to customer’s subject such heavy penalties are because of security reasons. Its also pushes the loaned to pay before the stipulated period so that he does not incur huge interest rates.
A resident Prestonburg Kentucky borrowed $150 on her weekly paycheck and promised to repay back with an added fee but six months down the line she is still paying for that loan that she borrowed and has been threaten to serve jail term if she does not clear her loan.
In Washington, Colorado and Tennessee this business of loaning cash is legal and it’s thriving. Other states are still pushing for payday loans business to be legalized and so they can get into business. But with the exorbitant interest rates that they charge they are not in favor with many who are running against them to make sure that these businesses are not legalized in their states or strict sanctions should be implemented so that consumers can be protected, since they target working lower income earners.
