Consumers Warned of Online Payday Loan Sites
Friday December 3, 2004
The Consumer Federation of America (CFA) is warning consumers to exercise extreme caution when using Internet payday loan sites, where loans due by the next payday, can cost up to $30 per $100 borrowed and borrowers typically face annual interest rates (APRs) of 650%. Read more...
Comments
No question the interest rates on payday loans borders on egregious. Just one more reason to plan ahead and have an emergency fund to cover finanical emergencies so you won’t need a payday loan to begin with.
Unfortunately the majority don’t and in any transaction the party who’s in need will come out on the short end. And let’s not forget interest rates can be deceiving. If a borrower were to secure fast emergency cash and pay $50 interest in a 15 day loan of $300 sure the interest rate is sky high, but it’s still $50. And it that money helps you pay 3 utility bills and avoid 3 $30 late fees. Was it worth it?