Research finds strong support that is continuing Southern Dakota’s capping consumer loan rates at 36% interest
This report is an element of the Series on Financial Markets and Regulation and ended up being produced by the Brookings Center on Regulation and Markets.
Prior to passing of the resolution, payday advances of around $350 were typically structured as two-week loans, due on the borrowers’ next payday. The borrower offers a check that is post-dated protection, and is frequently needed to provide the loan provider access to debit her bank account to get the loan. Ostensibly create as being a two-week loan, borrowers oftentimes find yourself unable to repay the loan in two weeks. Consequently, loan providers roll within the loans, with borrowers winding up within an average of ten loans per year. These strings of loans produced over 75% of the lenders that are payday total income of $81 million a year in Southern Dakota. (more…)
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Research finds strong support that is continuing Southern Dakota’s capping consumer loan rates at 36% interest