FYI: Those who find themselves pinched for cash often turn to high-cost payday lenders. But traditional banks and credit unions could serve that role for borrowers and do it at much lower rates, according to a new proposal from the Pew Charitable Trusts.
Right now, millions of consumers who need cash fast — say, to cover an unexpected car repair or to avoid having their utilities shut off — often end up borrowing a few hundred dollars from lenders who offer an advance or their paycheck or hold their car titles as collateral. Such businesses often charge high fees and punishing interest rates, dragging borrowers into a cycle of debt that’s hard to break, said the report published by Pew on Thursday.
Regards,
Ted
https://www.nytimes.com/2018/02/16/your-money/banks-payday-loans.html
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