Banning payday advances delivers borrowers that are desperate to pawn stores

Banning payday advances delivers borrowers that are desperate to pawn stores

Until 2008, a cash-strapped client in Ohio searching for a fast, two-week loan from a payday lender will dsicover by themselves spending a hefty charge. These unsecured short-term loans—often guaranteed by having a post-dated check and seldom surpassing $500 at a go—carried yearly portion prices (APR) as much as very nearly 400%, significantly more than ten times the conventional restriction allowed by usury rules.

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