First, a disclosure: as an element of a course IвЂ™m using, IвЂ™m involved in Rhode Island Payday Lending Reform, the coalition whose cause we discuss below.
Pay day loans are an easy method for those who require cash, and donвЂ™t have access to banking that is traditional, to have that loan quickly. Frequently, a debtor will bring in a paystub, and get a short-term advance loan this is certainly allowed to be paid back because of the borrowerвЂ™s next payday. Interest levels on these loans usually are extraordinarily high. In Rhode Island, the utmost rate of interest is 260%.
RI Payday Lending Reform press seminar, RI State home (picture by author)
The other day, people in the RI Payday Lending Reform coalition held a press seminar within the State House to advocate for legislation presently into the RI home and Senate that could cap interest levels for those loans at 36%. Read more