Banning payday advances sends hopeless borrowers running to pawn stores

Until 2008, a cash-strapped consumer in Ohio searching for a fast, two-week loan from a payday lender might find on their own having to pay a fee that is hefty. These unsecured short-term loans—often guaranteed having a post-dated check and seldom surpassing $500 at a go—carried yearly portion prices (APR) all the way to nearly 400%, significantly more than ten times the standard limitation allowed by usury laws and regulations. (more…)

Sarnali Bhowmick