‘Revolving Door of Debt’

The government has mostly left oversight of payday lenders up towards the states, making a patchwork that is regulatory.

Seventeen states ban or discourage payday financing. The rules often allow them to charge annual interest rates of 400 percent or more in the rest.

This new customer Financial Protection Bureau won’t manage to control rates of interest, but Fox as well as other activists state they need the agency to publish guidelines that may make it harder for payday loan providers to trap borrowers in rounds of financial obligation by determining regular, high priced loan rollovers as a unjust training. […]